2013年11月23日星期六

Chinese enterprise network market

Firstly, we make sure that this brand audit aims to Chinese enterprise network market.

Secondly, we introduce the concept of PEST analysis, which refers to a method when analyses the background of an enterprise or a group, according to the perspectives of political, economic and technical analysis, and then it will comprehensively hold the macro-environment and evaluates the influences made by these factors to enterprise during deciding the strategic aims.

According to the current Chinese enterprise network market, it makes the following PEST analysis for Huawei and Cisco:

Political Circumstance
1.  Domestic political stability in China
2.  In the Eleven Five-year Plan, it explicitly emphasizes on increasing the development strength of information industry, and in the Twelve Five-year Plan, the factors such as next generation network establishment, strong investment in government informatization and rural education, and full-scale medical informatization upgrade will become the main impulsion to the needs of network market. In addition, according to the State Council’s encouragement to software enterprises, application of new informatization, some new technologies and applications such as cloud calculation, Internet of things, mobile 3G, and the Three Network Integration will the major development direction for software enterprises;
3.  The Third Plenary Session of the 18th Central Committee of the Communist Party of China was successfully held that made the world pay much attention to China.

The plenary pointed out that the reform of economic system is the key point of comprehensively deepening reform, and the core problem is to handle well with the relationship between government and market that on one hand market will play a determined role in resource allocation, on the other hand the government functions better. Establishing integrated, open-up and orderly competitive market systems which can prompt the economic development to a more effective, equal and sustainable direction are the basis that ensure the market plays a determined role in resource allocation. A modern market system in terms of independent management and equal competition of enterprises, free choice and consumption by consumers and free flow and equal exchange of commodity and element must be accelerated as soon as possible. The moral construction of socialist market economy shall be constantly completed by means of taking great efforts to abolish market barriers, improving the efficiency and equality of resource allocation.

4.  The close diplomatic relationship between China and other countries.
5.  Since China joined WTO, it met less and less limitations in export and import.
6.  The changes of taxes, maybe the preferential part of taxes will be cancelled gradually.
7.  Patent Laws are stable in domestic.

Economic circumstance
1. After the financial crisis, the global economy appears to ease gradually.
2. Chinese CNP keeps a continuous, stable and high speed growth.
3. In China, there is a stable employment ratio, and constant growth of the lowest salary level. The level of residential dispensable salary increases at a stable and higher speed.
4. The threshold of labor and capital export is changed lower which enhanced the mobility.
5. The price of product continues to decline and life cycle of product changes shorter.
6. Getting loan from banks becomes more difficult and domestic and foreign stock markets stay in downturn stage.

Social and cultural environment
1. With the social development, every large enterprise has a growing demand in enterprise network product in business, and focuses on the information security when the enterprise buys it.
2.  Consumer group continuously expands and their values in buying the information product trending to be mature. Meanwhile, people become more and more rational when they buy the product that they like to pay much attention to cost-effective product and the brand and quality of the product.
3.  Product designing and package trend to be downsizing, and people trend to emphasize on the high effective and environment friendly product.
4.  People have an increasing demand on after-sales services.

Technological circumstance
1.  Drastic competition in technological enterprises
2.  The development of technology decreases the cost of product and services, but increases the quality of product
3.  With the fast development of global technology, explicitly the life cycle of product is shortened and the cost of independent research is very expensive, however, if it becomes successful, much profit will get.
4.  Global technological industries are gradually monopolized by several major enterprises, and the subjective rank of each enterprise in technology is important that stands for the comprehensive strength of an enterprise.


Sources:
1. Establish fair and transparent market rules, XINHUA, Nov 15, 2013

2. PEST Analysis about Huawei, Baidu Wenku, Nov, 2013
SUN Jiawei



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