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Essay text:
Threat of Entry
Determinants Rating Significance
Economies of Scale High Necessary to produce high volume in order to be profitable
Product Differentiation High The brand and quality perceived with the brand are important in this market
Capital Requirements High Need significant amount of investment to enter the market
Access to distribution Channels High The Chinese market is structured in a way that makes it difficult to gain access to distribution channels. You need a high distribution rate in order to succeed in this market
Cost disadvantages Independent of Scale High Technology and the learning curve creates high barriers
Government Policy Med Government policy is rated medium, as although they encourage foreign investments, the mandatory five-day workweek would create over-employment...
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