Lego in China

3. ECONOMIC china has several factors that direct in strengthening their economic position. One of the contributors is their disposal policy. Chinese government has stressed the importance of develop IT sector to the whole economic suppuration of the country, with consider equal to(p) commitments to massive investings in infrastructure positive effects of IT on its economic development stated by (Li, n. d. ). With more advanced IT departments, chinaware is able to attract more investments from foreigners.Not only that, china also created tensile investors policies. With developed IT structure and a supporting policy, Lego provide subscribe no trouble penetrating Chinas market. China was known as the most populated place on Earth, hence creating a uplifted demand for products available in market. This will keep the market practise going, given that there is enough supply for ein truthone. Hoshiko (2011) demonstrated that Cheap project rates are the keystone to the Chinese economic boom. With a population above 1. 2 billion, labor isnt one of their principal(prenominal) concerns.With low cost of labor, production cost will also drop, this enable them to produce inexpensive goods. If Lego decided to enter 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 rise 9. 9 percent in September from a year earlier, take by especially strong exports to Southeast Asia. All of these factors in the remove helps Chinas economic activity, and making it more appealing for investors to source in and plant their money inside of China. The government said Tuesday that it think to nurture as many as 50 state-owned enterprises to become globally competitive companies while maintaining control of companies engaged in key industries (Anon. , 2006). We basis see what the government is doing here, they are trying to nurture their companies to comple te globally, and talent less concern in internal competition. But global companies have started coming in and practiced the same thing too. Lego may do the same as well it will give them a newborn experience curve to see how they should run their business in China.Even though the specific strategy might not be the same in any otherwise country, but Lego will be able to sustain what are the steps and actions needed to succeed in foreign areas. Knudstorp (2012) as cited in Hansegard (2012) Were seeing growth in most Asian markets . upstart findings have found that Legos sales have been increasing in Asian countries, why? Disposable incomes in China have been outgrowth faster than GDP growth, making toys more affordable for parents and children. (Anon. , 2012). Take as an example China the people have more disposable income to be spent on their children.Moreover due to the baby-boomer the generation of China, there are a administer of parents now, and now with Chinas one child indemnity parents are more willing to spend for their loved ones. 4. CULTURE Chinese culture is not as interchangeable, the people held on to it and still regard it as we speaking, and they respect relationship, ranking and protocols. Saying no isnt as easy as it looks like in the Chinese culture, because they believe to defy someone would cause both parties to be embarrassed causing a loss of face. Kjerulf (2010) The Culture in Denmark tends towards the individualistic instead than collective and is very feminine.We can see there is a difference in the midst of Lego and the Chinese culture. We can directly tell, Chinese people are higher(prenominal) in power distance they call others by their title and become 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, such as In diana 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 theme and Halloween. So Lego figured they would rather not produce this product line, and focus 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 uptight towards ranking, and collectivist. While the employer has more of a flexible style, which gives the employees a new working experience and probably a better one.Reference Home Www1. american. edu (2002) Home. online ready(prenominal) at http//www1. american. edu/initeb/fl9577a/IT%20SW. htm Accessed 5 Nov 2012. Chinas Strengths and Weaknesses ci Center for American Progress Americanprogress. org (2011 ) Chinas 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 Glimmer 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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