Complexities in China
The country’s phenomenal economic growth over the last thirty years has not come without political and social hardships and challenges.
Since China remains a centrally planned system whose focus is on increasing its presence in a global economy that calls for different policies and structures, the future of its transition to market economy is still being written. Still, research suggests that the basic marketing strategies and practices of Western countries are effective in China.
The transition offers the ideal environment for companies to expand. In addition to a competitive analysis, it is vital that companies wishing to expand into China do a market and a country analysis, as well as an internal SWOT analysis. The country analysis usually comprises three categories: political, legal and economic conditions, infrastructure analysis and culture. A full investigation of these three categories will help a country to decide if China offers a reasonable expansion route or if it is too much of a risk.