Lego in China

3. stinting china has several factors that contribute in strengthening their economic position. single of the contributors is their government policy. Chinese government has stressed the importance of develop IT empyrean to the whole economic development of the country, with considerable commitments to massive investments in base positive effects of IT on its economic development stated by (Li, n. d. ). With more than advanced IT departments, mainland mainland China is able to attract more investments from foreigners.Not yet that, China also created flexible investors policies. With developed IT structure and a supporting policy, Lego pass on mystify no trouble penetrating Chinas market. China was known as the most populated place on Earth, hence creating a high demand for products available in market. This forget keep the market activity going, given that thither is enough deliver for e realone. Hoshiko (2011) demonstrated that Cheap grind rates be the keystone to the C hinese economic boom. With a population above 1. 2 billion, labor isnt one of their main concerns.With low embody of labor, production cost testament also drop, this enable them to produce inexpensive fulls. If Lego decided to enroll Chinas market, they will also gain this advantage theyll be able to produce their products at a lower cost. Bradsher (2012) has written that Chinas exports to all countries rose 9. 9 percent in folk from a year earlier, led by especially strong exports to south-east Asia. All of these factors in the end helps Chinas economic activity, and make it more appealing for investors to come in and plant their money indoors of China. The government said Tuesday that it planned to get as many as 50 state-owned enterprises to become sphericly competitive companies while maintaining control of companies active in key industries (Anon. , 2006). We can see what the government is doing here, they are nerve-racking to nurture their companies to complete glo bally, and giving less concern in native controversy. But global companies have started coming in and practiced the equal thing too. Lego may do the same as well it will give them a new experience curve to see how they should black market their business in China.Even though the specific strategy might not be the same in any early(a) country, but Lego will be able to realize what are the steps and actions needed to stick with in foreign areas. Knudstorp (2012) as cited in Hansegard (2012) Were seeing growth in most Asian markets . Recent findings have found that Legos gross revenue have been increasing in Asian countries, why? Disposable incomes in China have been growing faster than GDP growth, making toys more affordable for parents and children. (Anon. , 2012). Take as an example China the mass have more disposable income to be spent on their children.Moreover due to the baby-boomer the times of China, there are a green goddess of parents now, and now with Chinas one chi ld Policy parents are more willing to overleap for their loved ones. 4. CULTURE Chinese culture is not as interchangeable, the people held on to it and still respects it as we speaking, and they respect relationship, ranking and protocols. maxim no isnt as easy as it looks like in the Chinese culture, because they believe to deny someone would cause both parties to be embarrassed causing a loss of face. Kjerulf (2010) The Culture in Denmark tends towards the single rather than collective and is very feminine.We can see there is a difference between Lego and the Chinese culture. We can directly tell, Chinese people are higher in power distance they jaw others by their title and last name. Also the Chinese are very more likely 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 lines. With a lot of movie based product lines, much(prenominal) as Indiana Jones, Lego is able to market and alternate their products according to other cultural preference.We found a difference in between Chinas Lego official website with the other such as US, Lego in China had excluded the Monster Fighters edition. This can be understood, judging that Chinese people are not that keen on all these western monster melodic theme and Halloween. So Lego figured they would rather not produce this product line, and steering 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 tense towards ranking, and collectivist. While the employer has more of a flexible style, which gives the employees a new running(a) experience and probably a better one.Reference Home Www1. american. edu (2002) Home. online operable at http//www1. american. edu/initeb/fl9577a/IT%20SW. htm Accessed 5 Nov 2012. Chinas Strengths and scant(p)nesses 101 Center for American come on Americanprogress. org (2011) Chi nas 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 glint of a Revival NYTimes. 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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