Kathmandu Enter Into Chinese Market

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Expanding Kathmandu from Australia to China
A comprehensive study

Nan Peng

TABLE OF CONTENTS

1. INTRODUCTION 1
2. BACKGROUND ABOUT KATHMANDU COMPANY 1
3. OPPORTUNITIES OF CHINESE OUTDOOR MARKET 1 3.1 Outdoor sport in China 1 3.2 Situation of Chinese outdoor market 2 3.3 Competitors in Chinese outdoor market 2 3.4 Chinese economic situation 3
4. STRENGTHS AND WEAKNESSES OF KATHMANDU IN CHINA 3
5. HOW TO ENTER INTO CHINESE OUTDOOR MARKET 4 5.1 Selection of the entry modes 4 5.2 Selection of the Chinese partner 5
6. CONCLUSION 6
7. REFERENCES 8

1. INTRODUCTION
With the rapid development of economy and society, Chinese market has attracted a great number of attentions from foreign companies. Therefore, how to enter into Chinese market and how to be a successful company in China has become a realistic issue faced by business managers, entrepreneurs and consultants. This essay will focus on introducing one Australian local brand “Kathmandu” which is an outdoor sport equipment company into Chinese market. Thus, a detailed analysis of the current situation of the Chinese market and this foreign company is indispensable. Firstly, this paper will analyze the current situation of the Chinese outdoor sport market and the Chinese economy, and then identify the strengths and weakness of the Kathmandu Company when entering into Chinese market. Subsequently, selection of entry modes and partner and recommendations will be provided to deal with or to reduce the risks when enter into the Chinese outdoor sport market.
2. BACKGROUND ABOUT KATHMANDU COMPANY
Kathmandu Holdings Limited was established by John Pawson and Jan Cameron in 1987. The company started off as a small outdoor apparel shop in New Zealand and in 25 years has grown to a multi-national brand primarily producing outdoor sport clothing and equipment which combine with the advanced technology, high quality and high comfort level. Such as, tents and shelters, packs and luggage,



References: Beamish, P. W.,&Banks, J.C. 2001. Equity joint ventures and the theory of the multinational enterprise. Journal of International Business Studies, 18(2):1-16. Chinese Customs, 2011, “Export Procedure”, viewed: 20 May 2012, from http://www.customs.gov.cn/publish/portal0/. Chen, H. 2002, An analysis of determinants of entry mode and its impact on performance, Int. Bus. Rev., 11 (2002), pp. 193–210. Ilkka A. Ronkainen, 2007, International marketing, Cengage Learning, 2007, p417-422.   Joseph Simone, “Criminal Enforcement Against Counterfeiters”, China Business Review, 29/6 (2002): 22-23; Timothy Trainer, “The Fight Against Trademark Counterfeiting,” China Business Review, 29/6 (2002): 20-24. Kathmandu Annual Report, 2012, Introduction of Kathmandu, viewed 17 May, 2012, from homepage: http://www.kathmandu.com.au/. Kobrin, op. cit.; Minor, op. cit.; Charles Hill, International Business: Competing in the Global Marketplace, 4th Edition (Bostom, MA: McGraw-Hill Irwin, 2003), p. 47. Lining Annual Report, 2011, Introduction of Lining, viewed 17 May, 2012, from http://www.lining.com/eng/global/home.php. National Bureau of Statistics, 2011, “situation of Chinese economic”, viewed 17 May, 2012, from http://www.stats.gov.cn/. National Development &Reform Commission, 2011, “situation of Chinese market development”, viewed 17 May, 2012, from http://www.sdpc.gov.cn/. Peter Liesch, and Duncan Poulson, 2008, “An Unconventional Approach to Intellectual Property: The Case of an Australian Firm Transferring Shipbuilding Technologies to China,” Journal of World Business, 35/1 (2000): 1-20.  Swierczak, F.W. 1994, Culture and conflict in Joint Venture in Asia, International Journal of Project Management, 12 (1) (1994), pp. 39–47.

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