摘要:Calvin Klein是美国的时尚品牌。 Calvin Klein的设计精神吸引新一代的office lady以及年轻一代。 随着经济和技术的发展,Calvin Klein已经成为一个国际化的公司,也吸引了很多中国年轻人。
analysis of the possible risk from the PEST aspects
As a matter of course, Calvin Klein also would meet such dilemmas because of china’s different political, economical, technological and social environments. The best direction to analysis the possible risks are from PEST ((Kotler, 2011) four aspects of china market.
(1) Political environment:china is a country which is governed by a single party. The Chinese community party controls nearly the whole china. So the policies are very important. Many economical affairs are overly influenced by the policies, and sometimes you must compromise to government, such as the Google case. The legal environment is also a black hole. For thousands years, Chinese citizens all are under the administration by some entitled persons. Often, the punishment or the reward is all determined by the king or someone. You want to depend on the court in china to solve some events; maybe it is not a good way. Furthermore, the relationship between countries is a main influencing factor. When the relationship between china and American government turns bad, the business of Calvin Klein would decline and what’s worse, maybe it shall lose its china market.
Having said all above, if Calvin Klein wishes to develop in china for a long time, it should conform to the Chinese policies even sometimes this compromise is not accordance with the concept of the company. And the loose law environment also needs Calvin Klein to work more prudently. One day if Calvin Klein wishes to be listed in china, its matters needing intention are so many. So the best way for Calvin Klein is to acquire the policies of china and think over how to reply it.
(2) Economical environment: in the previous part, the great advantages have been discussed. It looks like that china have so many benefits and we do not need worry its economy. Nevertheless, we must keep it in mind that china is a country which economy regime is socialist marketing economy. It is a socialist state. The free spectrum of economy is less than American economy; many economical things still are affected by some powers. Most investment in china is done by government, and the companies with the highest GDP are all the national owned companies.
Towards the conception of citizens’ consumption, though it changes a lot, the native people are able to buy some normal goods; Calvin Klein is too expensive to them. Fixing the price is a risky process, with the other fashion brands and the Chinese local brands arise, it is likely that more and more Chinese consumers would buy other brands. It is a big challenge when facing it. In addition to these things, the huge discrepancy of the east and the west, the south and the north is possibly a development chance and a trouble. The china government had tried many ways to promote the economy of the laggard regions. After waiting these places’ development, a big chance is that some other companies will occupy these market shares. Whereas, if Calvin Klein Company set stores in those place, losses are inevitable. The last is along with the exchange rate of china ascends continually. The company must know how to sell its products.
(3) The technology environment: the technology of china cannot reach the level of American’s. And into a new market, facing a crowd of new customers, Calvin Klein must adjust its management methods and the service based on the new environment. The risks are maybe the local
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