The Validity of Good Life Fitness Product in the Chinise Market (Research Paper Sample)

International Trade Research
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ABSTRACT
Good life fitness product is the product meant to ensure human beings live a healthy life style and stay active. The product aimed at giving the customer a complete workout and being in position to even train at home and complement the gym routine for those who already have. Therefore this product is meant to diverse workout for the customers in the Chinese market.
This paper presents the analysis which is aimed at determining the nature and viability of the Good life fitness product. The company is one of the best Canadian companies known for providing fitness and wellness products since 1979.It does the production of the stretch and recovery product. Which for many decades it has been known to have the capacity to increase flexibility, reduce injuries and speed recovery. This analysis will be based on the political factors and they will influence the viability of the product. Economic factors will based on; the potential customers around, purchasing power, and company’s cost of capital. It will also focus on the social factors of the area which will involve both cultural and the demographic aspects of the external macro-economic environment. As they impact on the customer’s needs and the market size as long as the new product is concerned. The technological factors will be addressed the instances minimum efficiency in production levels and sway outsourcing decisions which can be experienced. Other areas of concern will be the porter diamond models to be used.
Basing on the PEST analysis, clear understanding will be arrived at on how the factors above will be in position to hinder to hinder or encourage the launching of the Good life fitness product in this case it is the strength and power product into the Chinese market. The opportunities and threats in the market are the area of focus in this analysis. The SWOT (strength weakness, opportunities and Threats) in the market has to be done basing on the situational analysis, market summary, demographic
PEST ANALYSIS: this model is mainly going to be used to assess the four external factors in relation to the business situation. It’s going to help in determining how these factors will affect the performance the performance and activity of the Good life fitness product company.
Political factors: It’s important to note that the main aim of any business is to make profit. In scenarios whereby government regulations and legal issues do not favor the operation of any business, it means chances of it being established in any given location will be very minimal. Basing on the idea that China has enjoyed Avery long term of political stability and the nature of the industries growing up on daily basis, basically the establishment of the good life fitness company will be viable.(Coghill, 2006). Then the launching of this good life fitness product will be viable and free from any forms of interruptions from governance. The success of this product in the market has to be based on the taxation policy of which will be based on the profit margin of the firm. The employment laws forms the foremost important aspect of the launching of this product. This therefore means that the labor laws which govern the workers such as : medical cover and pension will be guaranteed since most of the industries in this sector are not offering such services to their workers. On the aspects of environmental regulations Chinese government values the need for most the firms to operate in a very conducive environment free from any forms of pollution as its stipulated in the environmental laws of the country therefore the product has to be produced in an environment free from pollution. Trade restriction and tariffs are okay and in this regard it will favor the operation of the firm and this means more products will be sold. (Ortolano,2000)
Economic Factor: They affect the potential customers’ purchasing power and even the organization’s cost of capital. In this regard the factor which the launching of the Good life fitness product should be based on is the general level of economic growth which has to be expected both in the short run long run operation of the business. The inflation rates in the area are is attainable; therefore this implies that the returns will be very high in the long run. Interest rates to be charged should be low since the target population is that of are not that so well of The exchange rate on the product should be low in order to attract the users who have little knowledge on how the currency exchange rate (Grubel2014)
Social factors: The demographic and cultural aspects of the external micro environment needs to be given consideration, this will ensure positive impact on the customers’ needs and the size of the market will be realized on the launching of the Good life fitness product. In this the general health of the workers has to be given consideration. The population growth rate of China is promising; this implies that there will be large market for the product from the lager population of China. (Gupta, 2013). The use of the product should put more emphasis on the safety of its customers through availing all instructions required for the use of the product this will avoid any instances of accidents and in turn more customers will be attracted to purchase the product. Lastly more career attitude should be due to the fact that the knowledge about good life fitness product is new and needs more stimuli that will make it be in position to outdo other competitors in the market.
Technological factors: It is very important to note that these factors can remove or even lower barriers to entry and in the long term effect; it can reduce the efficiency of the production level of the Good life fitness product. This means the technological incentives should be very high to meet the expectation of the consumers in the due course possible. For the product to have large coverage and recognition in the market the rate of technological changes should be placed to be inline of the current state and be able to meet the high deficit that it’s there in the China market (Recklies,2006).
Porter Diamond model
This is model developed by machine Porter it suggest the reasons why as to why some and industries are within any given nations are more competitive as compared to others on the global scale. And he gave a secret to this by stating that the national homes base of an organization provides organization with specific factors such as: highly skilled workforce, endorsed raw materials and workforce shortage.
On the factor action production of Good life fitness product has to be ventured in areas of higher skilled labor .This calls for the need to ensure graduates with higher skills in sales and marketing and very persuasive in their approach to willing Customers, needs to be hired in order to make the business a success. (Roemer, 2009).
The Related supporting industries should be in this case with the aim of ensuring there is proximity of the upstream or even downstream. In this it means when both the local supporting industries and suppliers are very competitive home country business organization, will potentially get more cost effective and in the long run it will create a competitive environm...