Israeli wines in China: reaching for new highs

Israeli wines in China: reaching for new highs

I.       PESTEL Analysis about China

A.        Political factors:

The Chinese political system can boost the economy of the country thanks to the formal and informal rules. The government is focusing on the development of the e-commerce which will ease the enterprises that are interesting in investing in different industrial sectors. The regulations can help the growth of business and can help keeping it on the right side.

B.        Economic factors:

Since 2010, China’s economy has known a huge growth thanks to its export skills, low-cost but also skilled labour and the political situation. Analysis show that its economic growth should continue to increase but due to high inflation rate and high property prices it could slow down. However, the Chinese tends to develop more.

C.        Social factors:

The social and cultural aspect of China changes really often as the population keep growing faster than in most of the countries. For a population of this size, China is taking care of the education of its people and the literacy rate of the Chinese is over 90%.

D.        Technological factors:

China is famous with its creation of plenty and new products that are being used all over the world. The Chinese are using new mechanism to produce faster and the use of technologies to sell and distribute products via internet is easier for most of the consumers. But china has to secure its online payment system as a lot of people are feeling unsafe.

E.        Environmental factors:

The levels of environment pollution are growing as the production continues to grow in the country. Because of the big quantity of the population and the huge number of fabrics in China, more and more people complain about the quality of the air and china has to pay more sanctions for not preserving the environment enough. The developing of the e-commerce should decrease the levels of pollution as the people will command ore things from their home and they won’t go to the shops with their vehicles.

F.         Legal factors:

The continue with the developing of the e-commerce, china has to improve its legislative system so that the virtual space become more safe. No regulations are formed to support privacy and protect the consumer rights.

II.      SWOT matric:

Strengths Good localisation for production Good climate for production International exports[pic 1]

Expertise

Big number of vineyards

New technological machines

Quality team of winemakers

Weaknesses

Not enough knowledge of the wine market in china

Not enough wine consumers

Not knowing how to respond to different needs

of the consumers

Opportunities

Easy penetration on the market

Big growth because a lot of wine demands

Threats

Consumers looking for international marks

Consumers looking for Old-World wine

III.     CAGE: China in comparison to Israel

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