MARKET DEVELOPMENT | My Assignment Tutor

Lekha Sree Addanki(w19048586)SOCHITEL : MARKET DEVELOPMENT (Team_23)BRICS – Economic block of countriesCHINA — 1.4 Billion population 25crores (internet users )—> 28% of worlds populationWhen business-to-business is looked at, China’s 3 leading sectors are ; (1) Engineering and Machinery (20%)[ China is one of the leading machinery exporters in the world. Total exports of China’s machinery industry rose 8.33 percent to RMB 2.75 trillion (US$406 billion) in 2017.According to the EU SME Centre, foreign-invested enterprises contribute to 49.9 percent of the total export value. Chinese private enterprises and state-owned enterprises, respectively, shared 38.6 percent and 11.5 percent of China’s total machinery exports. ]IDEA 1 : B2B business model in Engineering and machinery industry :– Purchase– Sales– Customer service and support Power generation machinery is the leading sub-sector in China’s machinery industry, accounting for 24% of overall sales and RMB 4.8 trillion (US$708.46 billion) in the first three quarters of 2018.Basic parts, heavy machinery, and machine tools are three other important sub-sectors in the industry, accounting for 9%, 5.4 percent, and 4.7 percent, respectively.Robotics, machine tools, and agricultural machinery are among the sub-sectors of China’s machinery industry that will see increased capacity expenditure in preparation for the transition to high-end production. By 2020, the Chinese government wants to increase the localization rate of mid-range and high-end computer numerical control (CNC) machine tools to 80%.(MACHINE TOOLS[CNC])—> The use of computers to power machine tools in the manufacturing process is known as CNC machining. It helps China’s strategic industries, such as aerospace, telecommunications, and shipbuilding, operate more efficiently.So, our main target is CNC machine purchase. Aerospace, shipbuilding and telecommunications industries are our target customers. (2) Pharmaceutical and Medical (17%)IDEA 2 : The future development pattern of pharmaceutical E-commerce will depend on the organic interaction of two key factors: pharmaceutical stakeholders’ (producers) control of the medical resources and the availability of Internet enterprises to guide the conversion from offline to online traffic. Control of the medical resources traditionally includes leveraging upstream drug bargaining power; integrating downstream hospitals and drugstores; mastering logistics; and providing the medical resources (products and services). Internet enterprises provide value-added services and advertising; and establish, guide, and monetize online customer traffic. ]Just a small percentage of overall revenue comes from network/online (OTC) terminals. When hospital drug purchases are seen through the lens of policy decontrol, the hospital is far more likely to keep ownership of the in-patient pharmacy. The out-patient pharmacy will most likely be moved to the retail terminal and online; however, injectable drugs cannot be purchased online, so the online transfer will be restricted to some extent. The pharmacy terminal will be affected in two ways: on the one hand, it will benefit from the outflow of drugs from the hospital terminal; on the other hand, once the online distribution policy for prescribed drugs is liberalised, pharmaceutical E-commerce will have an unavoidable effect on retail drugstores. Out-patient pharmacy sales will move to the network/online terminal in the sum of RMB 70 billion, with out-patient non-injection drugs and OTC drugs being the most affected. The retail terminal would lose around RMB 80 billion in drug sales to the network/online terminal. As the value of drugs in the network/online terminal rises from RMB 10 billion to RMB 150 billion, it will account for 10% of the total market, allowing pharmaceutical E-commerce to advance to the next level.We predict that the pharmaceutical E-commerce market will hit nearly RMB 400 billion in revenue by 2020, based on this forecast. Facilitating factors such as the overall pharmaceutical industry’s continued growth, government policy that continues to ease, improved logistics, and less time-based restrictions as well as the development of customers online shopping habits could help the market. Purchase of medicines from pharma manufacturing company and selling it online (that includes home delivery). And our target customers are the people who wants to buy medicines effortlessly. (3) IT and Telecoms (10%), Manufacturing (10%) and Automotive (10%) BRAZIL — 211 million population. World’s 25 largest Exports and Imports5crores ( Internet, E-commerce users ).B2B. (Includes) –Purchasing. { Mainly Agriculture and Food Products } (Tools). –Supplier Management –Sales activities-Internet –Payment management. [ Main trade partners are China, United-Electronic rate –Service and support States, the Netherlands, the EU andexchange The countries of Mercosur ]-Integration-Manufacturing and Logistics. IDEA 4 : Marketing ( Exports and Imports)( Delivery, Customer support )—> According to IEEE Global Spec’s 2017,– 83% —> Search engines to source information of work.– 68% —> using internet to find components, equipment and services.– 66% —> consult supplier websites.IDEA 3 : B2B business model in Brazil in field of Logistics industry :– Delivery and customer supportAs Brazil have its main trade partner as China and also china has Engineering and Machinery as its leading sector, we can Export the Agriculture Harvest machineries from China to Brazil (Logistics). Brazil is worlds 25th largest Exports and Imports, mainly in Agriculture and Food products sector. World population is steadily growing and Brazil is expected to cater to the growing demand for food as it is one of the few countries in the world with the availability of expanded planted area. Brazil is growing its planted area at a pace of 500,000-700,000 hectares each year and the county is expected to increase its arable land by 49 million hectares over the coming decades. The increased land available for production has led to higher purchases of agricultural equipment. The government of Brazil has also implemented various incentive programs supporting the growth of small to medium sized rural producers driving the growth in the agricultural machinery market. Targeted customers are China’s Agricultural Equipment Manufacturers , Exporters.


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