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Chinese Car Market

The aim of this report is to evaluate the suitability of China as a new foreign market for BMW and it¡¦s product cars. The suitability of China as a new market for BMW will be assessed in the PESTEL analysis. The degree of competition that already exists in China for cars will be evaluated in the Porter¡¦s Five Forces Analysis. In the report the extent of FDI present in China and the suppliers of the FDI will also be assessed in order to properly evaluate the suitability of China as an opportunity for BMW as a new market for cars.

In addition a SWOT analysis will also be provided.

On the basis of these findings the methods of market entry will then be analysed in order to be able to recommend BMW a method of market entry for access to the Chinese car market.

China is a communist state that however lately has become more influenced by the capitalistic style of the west. Regarding the Chinese car market it has undergone major reorganisation at the central government level resulting in that the State Economy and Trade Commission have become responsible for the car industry¡¦s macro planning. This is believed to result in decentralisation of power to provincial governments and automotive


Finally, managerial issues such as choosing between ethnocentric and geocentric management and other cultural issues can be complex. In addition, mandating will also have to taken under consideration.

But the former nearly unattainable dream of owning a car is becoming more real for the Chinese people with the enforcement of the market-opening agreements of the WTO, attracting FDI and thereby capital, know-how and technology creating competition and lower prices. The rapid growth of the Chinese economy and substantial increases in disposable income in addition with a coming credit system will also very likely contribute to a real growth in the sales of cars. It is estimated that about one million people in China earns over 150,000 yuan (18,000 U.S. dollars) per year. According to english.peopledaily.com.cn this group bought cars priced over 400,000 yuan (48,000 U.S. dollars). It is this group that BMW will attract with their high-performance cars.

Some topics in this essay:
China Chinese, BMW German, Demographic China, Joint Ventures, Subsidiaries Firstly, Hainan Motor, Suppliers Low/Medium, Firstly BMW, Hill Thereby, McDonald Burton, car market, chinese car, chinese car market, car manufacturers, wholly owned, market entry, joint ventures, joint venture, turnkey projects, foreign car, foreign market, wholly owned subsidiary, foreign car manufacturers, wholly owned subsidiaries, method market entry,

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Approximate Word count = 5026
Approximate Pages = 20 (250 words per page double spaced)


  

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