China (Shanghai) Pilot Free-Trade Zone is a free-trade zone launched in Shanghai, on September 29, 2013. Free-Trade Zone is a breakthrough in China’s Economic development. In this zone， Chinese government relieves all the restrictions in international trade. Fro example, a tax-free period of 10 years for the businesses in the area， unrestricted foreign currency exchange and no firewall in the Internet.

Some people assimilate Free-Trade Zone to the “one country, two systems” in China’s economic policy.  Due to the financial crisis in 2008 and continue appreciation in RMB, China’s import trade fell significantly so Chinese government wants to use the Free-Trade Zone as a useful tool to increase the amount of import trade. Within few days Free-Trade zone has made considerable influence on many local companies and banks, and stock prices of these firms doing business have climbed. They can have a easy way to expand their foreign market. Moreover, foreign companies also benefit a lot in the Free-Trade Zone, they don’t need to pay expansive tax in China, which can help them reduce the trade cost.

Free-Trade Zone is a bold idea and now is still remain experimental stage. In my opinion, it is a win-win strategy and will help Shanghai become the Asia financial center in the future.

References:

http://baike.baidu.com/link?url=oO9Bjh_eaByGXdh4v1IP-XixCNVTe4lIyPPZfabCVICCNhZRK0NTGVcZKXXGszIQ2Dnl_cEbb6kW94sa8axrfuoJpd5z0UiTrASlJY-15xmhmvp_Gt3Bv-PRguwSilQZp1OT8oL8Ol2LT5xrkYRNLK

http://online.wsj.com/article/SB10001424052702304795804579100640245613408.html

http://en.wikipedia.org/wiki/China_(Shanghai)_Pilot_Free-Trade_Zone

After finishing the individual assignment “SWOT” which analyzed the situation of the second biggest energy drink company- Monster, I just knew Monster is the second biggest energy drink company! I never saw Monster’s products in China!

The Red Bull is the number one energy company and was the first to be introduced into the market in 1987. Red Bull has a clear leading position in China and almost has no competitors.  Differs from Red Bull, the Monster has small China market and is relative popular in Canada. Monster wants to reduce the gap between Red Bull and itself.  Expanding its market in China is very important. China has the most population in the world. Little increase in Chinese market will cause obvious increase in Monster’s whole market.

The second thing for the Monster to do is remain its cheep- price advantage. In general consumers can get a can of 8.3oz Red Bull drink or a can of 16oz Monster drink at the same price. If the Monster can remain its price advantage and pay great efforts on expanding Chinese marketing, it will reduce its gap with Red Bull in the future. Mons consumers prefer cheap price products.

references:

http://www.ukessays.com/essays/business/competition-and-market-analysis-for-red-bull-business-essay.php

Difference Between Red Bull and Monster

I begun to queue up for new iPhone 5s at 3 am on September 20th, but unfortunately, I still didn’t get the gold one because Apple only had very limited quantity of the gold iPhone 5s. Fewer days later, the gold iPhone 5s was sold on EBay and the price was more than 1000 dolor! Why the gold iPhone 5s is so hard to but and still some people willing to pay lots of money but it? I think it is due to two reasons.

The first is Apple’s number one brand position. Most consumers trust Apple’s products even they never used them because Apple is the number one brand. This brand position value plays an important role to influence consumers’ decision when they choose to buy a new phone. They always think of the  iPhone firstly.

The second is the Apple’s hunger marketing strategy. Apple reduces the supply of the gold iPhone 5s and causes “ demand exceeds supply” which attracts more people’s interest of its products and increases its products’ value. Some people are willing to pay more money to get the scare gold iPhone 5s. “Objects are valued because of their rarity”.

References:

http://www.ibtimes.com/gold-iphone-5s-where-still-buy-apples-rare-gold-iphone-1409270

http://blog.gsmarena.com/apple-retains-position-as-worlds-top-brand/