Abstract
This assignment describes the start of production and sales of luxury watches in China. The focus will be not only on product description but mainly which cultural and economic issues we will face as well as money and foreign exchange issues and continue with supply chain issues. At the end its will be summarized in the PESTEL analysis.
Product description
I would like focus on the production and sales of luxury watches. There is clear specification what defines high end mechanical wristwatches. The main factors are (1) brand include the design, (2) the intricate complications (features such as a calendar, chronograph, time-zone display) (3) the production process and finally (4) the ravishing jewelry. [1]
Cultural issues
There…show more content… For the central government as well as for provincial and city governments will be policy for a green economy opportunity, challenge or nightmare. What happen if the government starts to count green jobs and green firms which are distributed unevenly across different regions in China? We can expect clean energy policies in China incl. significant variations in actions, how to fulfill clean energy policy. At the end the new policy caused increase of necessary start up investment because of Cities with clean energy policies have 54.3% more green jobs and 61.8% more green businesses, compared with cities located in a province without such policies.…show more content… First are the Political Factors. There were change in government in 2012 and an increase effort to fight corruption. This will ensure political stability and will be an opportunity for all companies to expand in a politically stable environment. The government announced to continue in reduction on import duties and update labor law. It may lead to higher cost of operations in China. Finally the trade tension on EU and China could affect the relationship of EU and China. The second topic is Social Factors. The most populated country in the world is China with around 1.3 billion people. It offers huge opportunity for growth in this large target market and support to expand internationally. We will use the rising consumer spending power due to people who living in the cities and they are more likely to buy luxury watches. The rising of living standards pushes consumers to aspire for foreign brands such as luxury watches. [10] The next topic is Economic Factors. First of all I have to say that China had over the past five year’s significant GDP growth rate. We can expect that if China continues that surpass US GDP soon. Each citizen add more and more values to the society. This is suggested by China’s GDP rate. At the end are labor cost in China is extremely low. This is the reason why leading companies are inclined to hire workers from the country. The last factors are Technological Factors. There are typical issues e.g. new