Marketing 2500 24 hours Essay Example | Topics and Well Written Essays - 2500 words

Marketing 2500 24 hours - Essay Example The paper discusses demand-supply, expected sales & market share analysis, analysis of market entry mode, & strategies and estimated budget. All the analysis has base on extensive literature, case studies, theoretical modes and sales tables and curves. The statics results reflect well and car marketers from many companies both local and foreign are having an advantage. Most large automotive industries are currently either investing much in China or developing new small car models preferred by most families in China. Companies such Toyota, Ford Motor, Honda, General Motors are presently investing in China through joint ventures with the Chinese counterparts effectively thus increasing market share competition. Unlike the large international automotive industries, China’s one is fragmented. Most cars are small ones with the huge companies producing up to 37% of the total output. However, China’s current cost of labor is significantly low and the government has referred to the situation as a pillar industry one with high growth potential. The car industry in China continues to be attractive because the tariffs reduction in the industry intends to continue too much lower in the next few years. The government also plans to put car import quotas. Price decrease in China is causing many other auto companies to reduce their prices consequently. In the next few years, companies in China are to face an over production of up to 20% of cars. China has expectation to host more than 140 million cars on its roads; this is much more than the present hence forcing the government to improve the transport infrastructure and services. Background The factory began a s a truck building factory producing their first Jie Fang CA-10 in 1956 by the assistance of Russian Soviet Union. The company began its operations with only 39 employees who travelled to Stalin Truck Factory to receive their learning experience and instructions on how to build and construct trucks. The co mpany is located at Changchun a city that was identified by the Soviet Union as the base of the factory. The city is also situated on the northern side of china, which is also near Russia. The company continued with its operations by also producing passenger cars in 1958. The company produces luxury vehicles that have gained popularity in the country. Due to a lot of fragmentation, the company has entered into ventures with other companies such as Volkswagen. The company has also moved to acquire Tianjin Automotive Xiali in September 2002. In 2009, the company entered a joint venture with Toyota and General Motors companies (Hu, 2006). China’s development concerning automotive is high i.e. recent statistics showed that every 1000 Chinese owned an average of 1.5 car units that is over the global average. Other governmental statistics also showed that almost 32% of the Chinese urban population intends to purchase cars in the next 5 years. Introduction The auto industry that is an important sector in China’s modernization and industrialization endeavors has been growing very fast since the 1990s. In the present past years, China has become the world’s greatest automotive manufacturers, with yearly production output of 18 million units in 2011. It is also currently the largest automotive market in the

Joint Venture between the Government and Business in Africa Term Paper

Joint Venture between the Government and Business in Africa - Term Paper Example The company has engaged in many social and economic activities that have benefited the country and the citizens. This includes the construction of roads, hospitals and schools. This has helped in growth of the economy and improvement of the living standards as the per capita income has grown from $80 to $6000 per year. In its early years of its operations, after the discovery of the diamonds, De Beers operated, as a monopoly by regulating diamond supply, which meant the price of diamonds, remained high. After sometime, De Beers realized that they could not control the market anymore. The company was forced to stock enormous amounts of diamonds when the demand for the diamond was extremely low. The company also discovered that they could not control the discovery of diamonds in the entire world. For instance, Canada refused to join the cartel that De Beers had formed. The change of policy was also largely influenced by the unfavorable image created by blood diamonds. Rebels in the nei ghboring countries would force civilians to extract the diamonds and sell them off in order to get money to purchase weapons. The company’s change of focus changed from scheming the supplying the diamonds to a moderate policy of marketing and selling the diamonds already in their stores. This focus helped in creating demand rather than controlling the supply. The company still maintained a significant market control through selling the diamonds to traders who were willing to conform to the laws of the land and regulations set by De Beers. This helped to create an environment to conduct business in a more ethical manner. The construction of the Kimberly process in Gaberone ensured that all the sold diamonds were mined legally. This helped in diminishing the blood diamond issue, which was used to finance wars across Africa. This also helped to restore the reputation of the company, which had been eroded by the blood diamond issue. (JOE NOCERA, Diamonds) The success story of thi s joint venture between De Beers and the government of Botswana has worked because the Botswana government believes in democracy and encourages economic growth in the country. The government also saw the partnership as a way to improve the living standards of the citizens in the country. For this type of partnership to flourish, the government must have the will to improve for the benefit of the common citizens. The company had previously attempted to work in partnership with other countries and government but, it did not work due to corruption in those countries. Since Botswana attained its independence, she has always remained democratic and free state. Here, the leaders in the government are sincere and intelligent. This is the rationale as to why the joint venture has been of help to the Botswana citizens. We can therefore hardly compare Botswana leaders with other African leaders who only enhance their selfish interests. Many African leaders accept money from foreigners in orde r for foreigners to extract the country’s resources without benefiting the people of that country. WTO trade negotiations over farm subsidies The government of United States has for many years partnered with private businesses in the country. Among the common partners are the farming industries. They enjoy many subsidies from the government each year. The World Trade Organization (WTO) was established after the World War II. Its main role was to regulate and create an economic order where all