Lego in China

3. ECONOMIC mainland mainland Chinaw be has several factors that cave in in strengthening their economic position. one(a) of the contributors is their governing policy. Chinese government has stressed the importance of develop IT sector to the all in all economic development of the country, with considerable commitments to long coronations in infrastructure positive cause of IT on its economic development tell by (Li, n. d. ). With more advanced IT departments, mainland chinaw atomic number 18 is able to attract more investments from foreigners.Not scarce that, chinaware also created flexible investors policies. With essential IT structure and a supporting policy, Lego bequeath oblige no trouble shrill Chinas market. China was cognize as the most populated dictate on Earth, hence creating a soaring demand for harvest-tides available in market. This ordain keep the market activity going, attached that there is enough supply for everyone. Hoshiko (2011) exhibit that Cheap labor rates are the keystone to the Chinese economic manna from heaven. With a population above 1. 2 billion, labor isnt one of their important concerns.With low approach of labor, production cost result also drop, this enable them to modernize inexpensive goods. If Lego decided to enter Chinas market, they will also piddle this advantage theyll be able to upraise their products at a lower cost. Bradsher (2012) has indite that Chinas exports to all countries move 9. 9 percent in family from a year earlier, led by especially strong exports to Southeast Asia. either of these factors in the end helps Chinas economic activity, and making it more appealing for investors to come in and plant their property inside of China. The government said Tuesday that it mean to nurture as many as 50 state-owned enterprises to become worldwidely militant companies while maintaining control of companies engaged in key industries (Anon. , 2006). We can clear what the governmen t is doing here, they are trying to nurture their companies to arrant(a) globally, and giving less concern in internal rival. But global companies have started coming in and practiced the like thing too. Lego may do the resembling as well it will overhaul them a new experience bring down to see how they should run their business in China.Even though the specific strategy efficacy not be the same in any separate country, but Lego will be able to realize what are the steps and actions needed to succeed in foreign areas. Knudstorp (2012) as cited in Hansegard (2012) Were seeing growth in most Asiatic markets . Recent findings have entrap that Legos sales have been increasing in Asian countries, why? Disposable incomes in China have been growing speedy than GDP growth, making toys more low-priced for parents and children. (Anon. , 2012). Take as an example China the wad have more fluid income to be spent on their children.Moreover callable to the baby-boomer the generat ion of China, there are a percentage of parents now, and now with Chinas one child Policy parents are more willing to spend for their love ones. 4. CULTURE Chinese culture is not as interchangeable, the people held on to it and even so respects it as we speaking, and they respect relationship, rank and protocols. Saying no isnt as easy as it looks like in the Chinese culture, because they believe to deny person would cause both parties to be humbled causing a loss of face. Kjerulf (2010) The shade in Denmark tends towards the individualistic rather than collective and is very feminine.We can see there is a difference amidst Lego and the Chinese culture. We can directly tell, Chinese people are higher in power distance they call others by their title and last name. Also the Chinese are very more possible to be collectivist, actions that they decided are for the greater good of their people. Lego is very flexible in case of their products itself by having a lot of product line s. With a lot of picture based product lines, such as Indiana Jones, Lego is able to market and take turns their products according to other cultural preference.We found a difference in betwixt Chinas Lego official website with the other such as US, Lego in China had excluded the Monster Fighters edition. This can be understood, judgement that Chinese people are not that keen on all these westerly monster theme and Halloween. So Lego pass judgment they would rather not produce this product line, and focus on the others. If Lego had made an investment in Xiamen China, there should not be any problem. To begin with the Chinese people are more uptight towards ranking, and collectivist. spot the employer has more of a flexible style, which gives the employees a new working experience and credibly a better one.Reference Home Www1. american. edu (2002) Home. online on hand(predicate) at http//www1. american. edu/initeb/fl9577a/IT%20SW. htm Accessed 5 Nov 2012. Chinas Strengths and calorie-freenesses 101 pith for American win Americanprogress. org (2011) Chinas Strengths and Weaknesses 101 Center for American Progress. online Available at http//www. americanprogress. org/issues/china/report/2011/02/08/9074/chinas-strengths-and-weaknesses-101/ Accessed 5 Nov 2012. China Exports Rise, Hinting at a scintillation of a revival NY clock. com BRADSHER, K. 2012) China Exports Rise, Hinting at a Glimmer of a Revival NYTimes. com. online Available at http//www. nytimes. com/2012/10/14/business/global/china-exports-rise-hinting-at-a-glimmer-of-revival. html? _r=0 Accessed 7 Nov 2012. 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