The scenario of this determines analysis over the new market diversity. In this regard, it is required for an organisation to understand the market in which they wish to enter with specified business strategy. Thus, organisation of this report may consider:
- Provide a comprehensive understanding over the business environment of 4Com Plc.
- Develop an understanding to access the influence of environmental factors over the company.
- Identify the function of marketing analysis incorporated with marketing strategy of 4Com Plc.
In modern era, every single organisation is looking forward to expand its business at international level because it carries high potential of making profit at maximum level. There are various marketing strategies that are present at global level which can be used by companies when they are looking forward to enlarge their business (Newell and Marabelli, 2014). Enterprise which has been taken under this report i.e. 4Com Plc which was found by Daron Hutt in the year of 1999 and headquartered in England, United Kingdom. Report will show different marketing strategies that may aid this company to expand their business in Chinese Market.
Formulating marketing strategy in relation to Chinese business environment
In today's global business environment, if an organisation is looking forward to expand its business at international level it is must for company to adopt the best marketing strategy which may aid them in doing business expansion in an appropriate sense. It has been analysed that there are ample number of factors that are present in macro business environment that can affect actions, aims, profit and objectives of business firm which is expanding at international level. Political, economical, social, technological, ethical and legal are some macro elements that needs to be properly examined and analysed by 4Com Plc if it is trying to enlarge business operations in China.
In this context, Chinese business environment is consist with various opportunities as this country have largest population in all over world. 4Com which is doing business in United Kingdom's market and follows all the rules and regulation that this country carries but major problem that can be faced by 4Com Plc while expanding business in China is that developing marketing strategy because Chinese people do follows totally different culture than UK's citizens (Potts and Bierlein Palmer, 2014). Some of strategies that are going to get connected with PESTLE analysis are given beneath:
Political: China Government has made some strict rules and regulations for companies who are looking forward to expand business in their market. It is not an easy task to follow all the norms and regulations which has been made government but in order to do business legally it is required for them to develop all the business firm. Annual growth rate of China in 2016 was 0.494% which is good and business people under this country are rapidly adopting new tools and techniques that are coming at market and this action has helped this nation in growing in continuous manner.
Economical: Economy of China was renewed in the year of 1978 which has helped them in coming on second position in 2010 which has highest growing rate of economical conditions. This factor can put impact on developing marketing strategies when 4com Plc is trying to enlarge business in China (Roca and Helbing, 2011). On the other hand, domestic companies of this country and government as well do not easily helps organisations who are trying to come in Chinese market.
Social factors: The cultural and social aspects in China plays a crucial role, it involves – population growth and age distribution. It can reflect social trends as well as cultural values. Due to high population growth, social behaviour also put a vast impact on decision making process of companies. China is following collectivity cultural, the nation is following Geert Hofstede's value dimensions. The current population of china is 1.3 billion and having an estimated growth rate of 0.494%.
Technological factors: Due to technological advancement and globalisation, new products and services are being developed. But the major technological concern is the evolution of B2C industry in china which is not safe technique cause of unstable online payment system. Individuals' needs and wants in China are being ignored as there had been only 1% credit card users in 2005. In order to grab market opportunities, Chinese government is acquired various techniques, i.e. biotechnology and computers.
Environmental factors: China is a developing economy which also reflect natural environment. Due to its high population, water, air and noise pollution has increased, deforestation, industrial wastage, biodiversity and climate changes are some environmental threats which are being faced by the nation at present. However, Chinese government made certain necessary initiatives in order to identify and resolve these environmental concerns.
Legal: The Law of People's Republic of China on Chinese-Foreign Equity Joint Ventures has helped this country to developing proper laws for foreign companies that are willing to expand their business in China. Tax system of China is totally different from United Kingdom and carries different laws as well. 4Com Plc may get into some sort of trouble while developing marketing strategies in order to improve sales of products that this company is going to offer in near future (Silver and et. al., 2013).
Henceforth, Online Media can be stated as the best sort of marketing strategy can help 4Com Plc launching its products and services among Chinese people. With the help of this tool, 4Com Plc will give details to consumers in China of what products and services they are offering (Newell and Marabelli, 2014). Along with this, it has been located that in order to get launched in Chinese business market it may be possible that firm gets to make some changes in their goods and services which may directly aid in enhancing their sales and reputation both at the same time.
Function of a marketing analysis within the marketing strategy along with some analytical skills of different individual companies
Marketing strategies may aid a firm in entering a whole new market in a successful manner (Strauss, 2017). Here, it is required for 4Com Plc to select the best approach while launching its products and services in china. Some of functions of marketing strategies are given beneath:
- Creates a Guide
- Integrates the Business
From above mentioned report, it has been concluded that expanding business at Chinese market may aid a firm in improving both profitability and productivity with great margins. Different marketing strategies and PESTLE analysis of a China's business market can help 4Com Plc in expanding business at in much positive manner where company can expect great results like generating of revenue, improvisation of brand image in all over world and many more.