Question

Describe the opportunities and threats of entering (American Companies) to the market in China.

Answer 1

Following are opportunities and threats of entering to the market in china.-------

Opportunities--------

1. china consumer class are expanding very fast , so it give opportunity to the foreign brand to expand their business in china.

2. Now in china wesern brands are highly regarded by the chinese people, they started adopting foreign brands.

3. second and third-tired cities are opened for the franchising with the foreign brands. so it give more scope to them.

Threats-----

1. local distribution network, buying habits of local consumer, and other regulatory requirement can make china a very difficult market to access.

2. Intellectual property right in an area has been very difficult to get.

3. china has many markets and it also have diverse consumer environment .

4. Due to tough bureaucracy , it is very tough to obtain licenses and permit for doing business in china.

5. there are several types of govermental challenges , as transperency of goverment procedures and corruption are the chief concern for the companies who are moving in china.

6. local chineses people did not easily accept the foreign goods.