Marketing Analysis Report: An Insurance Company Expanding to China (Essay Sample)

Marketing Analysis Report: An Insurance Company Expanding to China
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Introduction
Entering new markets can be a good strategic move for any business, though it comes with some challenges that need to be addressed. To leverage this opportunity, there is need for the business to analyze the new market and select an effective entry strategy. Hence, the paper aims an conducting a market analysis of China as a potential destination of an insurance company.
1.0 Analysis of A Potential New Market
1.1 Business Environment-China
China represents one of the largest insurance markets globally which is both closed and under-served. Notably, the country has more than 20% of the entire population of the world and a high level of domestic savings implying that the company is a perfect destination for an insurance company that intends to venture in international market (Wang, 2018). Notably, the Chinese Regulatory Authorities have been easing restrictions previously imposed on foreign firms. For instance, there were only nine foreign companies licensed to operate insurance business between 1992-1999 with operations being confined to Shanghai only (Wang, 2018).
1.2 Advantages of Entering China
Stability of Doing Business in China
Political, economic and social stability has greatly enhanced growth of China in all spheres for the last few decades (Quer, Claver & Rienda, 2010). Essentially, the country has been very stable which is a critical element for the success of any business. Hence, the insurance company entering this market will be able to strategize and predict the future with certainty.