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China Market Entry: SWOT Analysis
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Fig. 1: The results of a SWOT-analysis are often presented in the form of a matrix, the so-called SWOT-matrix.
Overview
A SWOT analysis is generally conducted to evaluate Strengths, Weaknesses, Opportunities and Threats related to the market entry.
Wile Strengths and Weaknesses constitute internal factors (they are inherent to the company and can thus be influenced), Opportunities and Threats are specific to the sector of the company's target market (they are inherent to the company's market environment and can thus usually not be influenced).
The overall objective of a SWOT-analysis is to capitalise on the strengths and minimise the effects of the weaknesses.
- Commonly used internal parameters:
- The companies unique marketing mix (4-Ps / 4-Cs)
- HR, manufacturing (e.g. patents) and finance capabilites
- Commonly used external parameters:
- PESTEL factors
(PESTEL = Political, Economic, Social, Technological, Environmental, Legal)
- PESTEL factors
Although each SWOT-analysis must be carried out separately for a given organization or target market sector, there are various external factors (Opportunities, Threats) that can commonly associated with a China market entry. A list can be found here: