A Study Of The Introduction off a U.S. Consumer Product Into The People's Republic Of China Using Soft Drinks As A Prototype
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Authors
Mathison, Mark
Issue Date
1993
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
This dissertation discusses the considerations that must be evaluated by
a U.S. enterprise wishing to conduct business in The People's Republic of China.
Examination of regulatory issues, consideration of marketing techniques to adopt,
and evaluation of the economic factors are three major areas that the U.S. soft
drink companies, The Coca-Cola Company and Pepsi-Cola International,
extensively reviewed in order to successfully enter the Chinese market. A
general overview of the Chinese consumer market and an in depth study of these
three main headings clearly show that the Chinese consumer market currently
has the greatest potential of all the world's consumer markets due to two primary
factors; one being the enormous Chinese population, and the second being
intense desire of the Chinese people to obtain Western consumer products. This
dissertation is a compilation of many different sources. Published literature
obtained from the U.S., Hong Kong, and China, and personal interviews with key
corporate personnel that are not available to the average U.S. undergraduate
student as the author was frequently advised during many interviews with
personnel from both Coca-Cola China Limited and Pepsi-Cola China Limited.
The results indicate that indeed the consumer market in China has huge
potential, however U.S. enterprises and other foreign investors must also be
sensitive to and familiar with the culture of the country in order to conduct a
successful and profitable business. One can not presume to make huge profits
in a short period of time from this rapidly developing third world country.
Generally success will be achieved only with long term investments and
commitments in China, depending on the market that one is engaged in. China is
clearly the market that the capitalist world is looking toward, but foreign
economists have difficulty applying their capitalist economic approaches to this
non-capitalist country. Capitalist economic theories do not apply to this
communist country that is defined as having a "socialist market economy."
Although Western economic theories may apply in the future, it is the author's
observation that those theories are not operative at this present time. Using the
U.S. soft drink market in China as a prototype, this dissertation outlines for the
reader the specific process that these companies have used to enter this market
and of the great potential China has to offer to the rest of the world in terms of a
huge population of soft drink consumers. Although China remains
underdeveloped and continues to operate under communist philosophy, the
Chinese government is developing opportunities for foreign investment
enterprises which are anticipated to eventually bring China up to a first world
status.
Description
xi, 92 p.
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License
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