China as an Engine of Global Economy - Term Paper Example

? of the of the Number Term Paper Draft A. Social Major Historical Developments China has a long history of 5000 years. During the earlier times, China developed a culture which is rich in arts and philosophy. The country since the early days has been economically, politically and militarily dominant in its region. Previously, the country used to be administered by Confucian bureaucracies and was based on the system of imperial regimes. After 1911 the country witnessed political instability. However, with the shift in power to the communist party of China, the scenario changed radically and the country all over again started to experience new heights. Furthermore, with Japanese assistance and liberalization reforms, the country further made appreciable progress (“china's development: assessing the implications”). China has been instrumental in developing some of the most amazing and innovative products that the world has witnessed till date. Over the past three decades, the development of China has been remarkable. The country is often dubbed as the ‘engine’ of the global economy. 2. Population and its Composition China is a country characterized by diverse culture, language and religion. As of 2013, the total population of the country is 1,349,585,838. Among the overall population the following is the age structure. (Source: “East & Southeast Asia: China”) Age Structure Population 0-14 years 17.2% 15-24 years 15.4% 25-54 years 46.7% 55-64 years 11.3% 65 years and over 9.4% The above table shows that majority of the population belong to 25-54 age groups and this can act as a favorable factor for aviation business. The major religion of China is Daoist and Buddhist, Christians and Muslims accounts for 3-4% and 1-2% respectively. The major ethnic group in the country is Han Chinese which is about 91.5% of the overall population. Manchu, Miao, Zhuang, Tibetan, Mongol, Korean and Yao are some of the other ethnic groups of the country (“East & Southeast Asia: China”). The country is developing at a significant pace and as a result of that the rate of urbanization is 2.85%. Currently, 50.6% of the population reside in urbanized areas. The literacy rate of the country is also striking, i.e. around 95.1 % people are literate. In the context of occupation, the majority of the people are involved in the manufacturing sector (“East & Southeast Asia: China”). In addition, a substantial percentage of the population is also engaged in agricultural activities. 3. Mobility Despite the differences in the labor market trends, survey results reveal that the job mobility is high. The job market of the country is channelled through strong ties. The job changers generally rely on intermediaries to help them find new and better opportunities. However, this high mobility has a positive impact on the economic status. Every shift or rotation of job results in the development of economic status. Paradoxically, the mobility of place is low as Chinese workers prefer to work in their home turf (Bian and Ang 981-985). 4. Transportation Although, China still counts as a developing country, but its transportation infrastructure reflects something completely different. The transportation system of the country can match up with any other developed countries of the world. The major transportation modes of the country are airways, roadways, railways and waterways. As of 2013, the country has 507 airports and almost covers the whole country. The country also has a whooping 86,000 km railway network. In terms of its roadway transportation, China has the coverage of 4,106,387 km road. The waterways is another vital communication mode of the country, it has a coverage area of 110,000 km and is ranked at first position globally (“East & Southeast Asia: China”). The major seaports of the country are Ningbo, Dalian, Qinhuangdao, Tianjin and Shenzhen among others. The transportation infrastructure of the company clearly reveals that it is favorable for any kind of business. However, it can also act as a potential threat to an aviation company if the other transportation modes are offered at a low price. 5. Communications Communication infrastructure of a country is vital for any kind of business. The significance increases if it is an aviation business. The major communication mediums of the country are fixed telephone lines, mobile phones, broadcasting media encompassing television and radio. In addition, newspapers and magazines are also important communication modes of the country. With the development of technology, the internet has also become one of the widespread modes of communication. China has around 389 million registered users. Furthermore, the country also had 20.602 million internet hosts. Hence, from these facts and figures it is obvious that the country has a well developed communication infrastructure. However, it is also important to ensure that the most effective communication medium is selected for targeting the intended audience group. The communication medium structure of the country is as follows: - Communication modes Number Newspapers 2200 Journals and Magazines 8000 Radio Station 1000 Television Channel 1000 Internet Host 20.62 million Fixed Land Line Mobile Line 285.115 million 986.253 million (Source: “Dong”) According to the studies, majority of the youth population likes to communicate over online medium. Social media has become one of the popular modes of communication in the country. The impact of social media has not remained restrained to only youth, but has also appealed to the other age groups. The target audience for the US airways are generally international business customers, upscale customers and pleasure travellers. Therefore in order to target this customer segment effectively, the company should use the communication media that have the ability to appeal to a larger segment. The company should advertise in newspapers and business magazines as this is the two favorite communications medium among the chosen customer segment. In addition, social media also have mass reach and can offer great results. Therefore from the above facts it can be stated that the company should effectively frame its strategies for promotion. 6. Energy The country produces around 4.94 trillion kWh electricity and the consumption is 4.693 trillion kWh. The country is also the world’s largest electricity consuming country. Studies have also shown that 9.79 million bbl/day is consumed by the Chinese population, while the total production is 4.15 million bbl/day. The gap is fulfilled by 48,700 bbl/day crude oil imports (“East & Southeast Asia: China”). 7. General Cultural Pattern The culture of a country plays indispensable role in shaping a business. The taste, preferences and demand for a product is greatly dependent upon the culture of the host country (“Richards”). Hence, companies penetrating in another country should carefully analyse the culture and make strategies. The general characteristics of Mores and Folkways are approved behaviour, spontaneous origin, hereditary and distinctiveness. However, there are certain differences between the two cultures. For example, Folkways are wider character and more general than mores. A company must not carry out any kind of marketing activity that hampers or a hurts a culture. Hence it is evident that culture has a strong implication on the marketing activities of a firm. 8. Purchasing Influence There are numerous factors that impact the purchase decision of a consumer. Survey results show that around 90% of the consumers stated that online reviews and word of mouth promoters acts as the biggest influence. However, the major role is played by the customer. A satisfied customer becomes a promoter of the company and has a major impact on others. In addition, several factors related to products and service also play vital role in influencing the decision. (Source: “Gesenhues”) The role of opinion leaders in influencing the purchase decision of customers is also vital. Opinion leaders are the one who is considered important by the society (“Bergstrom”). For example, if a person is being asked for advices and one who speaks out among the mass can be tagged as an opinion leader. Therefore US airways should carry out a pilot survey to identify opinion leaders and must use them for promotional purposes. 9. Purchasing Motives Culture has a profound impact on the purchasing motive of the customers. Studies have revealed that the culture of a country significantly impacts the values and attitudes and thus greatly affect the decision making style. The discretionary income among the Chinese population is not limited and hence economic motives also exist. Due to disparities in income, few customers often find difficulties in affording costly products. As a result of that a company operating in China must offer more variants so that every customer segment can be satisfied. Studies have also shown that in China, a product is purchased for the purpose of satisfying own intentions. However, a significant number of people also believe that purchasing exhibits social status (Leng and Botelho 260-264). Works Cited Bergstrom, Guy. “Who are Opinion Leaders, and Why Do They Matter?” About. About.com, 2013. Web. 15 Oct. 2013. Bian, Yanjie. and Soon Ang. “Guanxi Networks and Job Mobility in China and Singapore.” Social Forces 75.3 (1997): 981-1005. “China's development: assessing the implications”. Apana. n.p., 2007. Web. 15 Oct. 2013. Dong, Fan. “Research on Chinese Media and Communication: China and the West.” Omicsgroup. Journal of Mass Communication and Journalism, 2011. Web. 15 Oct. 2013. “East & Southeast Asia: China.” CIA. The World Fact-book, 2013. Web. 15 Oct. 2013. Gesenhues, Amy. “Survey: 90% Of Customers Say Buying Decisions Are Influenced By Online Reviews.” Marketingland. Third Door Media, Inc., 2013. Web. 15 Oct. 2013. Leng, Chan Yie. and Delane Botelho. “How Does National Culture Impact on Consumers’ Decision?making Styles? A Cross Cultural Study in Brazil, the United States and Japan.” Curitiba 7.3 (2010): 260-275. Richards, Leigh. “The Effects of Socio-Culture on Business.” Chron. Hearst Communications, Inc., 2013. Web. 15 Oct. 2013. Read More