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There is no comparable to China,it is the worlds most populous nation in the world,it is the worlds second economy just behind the United States,and major aspects of its society are changing extremely fast.Hence,with those changes many new opportunities,which in many cases were not present one or two decades ago,are now appealing to companies and people from around the world.Notably,one of its industries which is evolving very rapidly,and about which the Chinese govermment is paying great attention,is the agricultural industry.For instance,over the last40years Chinese rural population decrease by half,going from82.5％in1977to42％in.2017.While the need for food has certainly not decreased and rural population is aging,the labour force for agriculture is declining rapidly.Hence,to cope with a decreasing labour force China is.actively looking to improve agriculture efficiency and mechanization.
Over the last two decades,Agrimax,a Canadian company,has expanded its material handling and construction businesses to China,but not its agriculture one.Thus,because of the recent changes to the Chinese agriculture industry,it could now be suitable for Agrimax to bring its agricultural business to China by introducing conversion track systerms(CTS)for tractors and harvesters.Accordingly,the purpose of this thesis is to provide an in-depth look at the Chinese agricultural machinery industry,analyze the market structure to see if it holds potential for CTS,and develop a marketing strategy to introduce CTS in China.
In this paper,the PESTLE framework is used to provide a thorough investigation about the key aspects which could influence the market conditions for CTS in China.Notably,the PESTLE framework is used to analyze political,economical,social,technological,legal,and environmental characteristics that could affect the introduction of CTS in China.In addition,the Porter Five Forces framework is used to develop an understanding about the dynamic of the agricultural machinery industry.For instance,it allows to identify the key forces influencing profitability and help derive strategic recommendations.While those two previous tools provide a relatively high-level understanding about the agricultural machinery industry,segmentation and targeting allow to identify the number of tractors and harvesters which could be compatible with CTS.
According to the PESTLE analysis,Chinas agricultural machinery is still30to40years behind the United States.Nonetheless,all the necessary conditions for developing the market of CTS such as suitable crops,large farmlands,knowledgeable farmers,and muddy soil are present.In addition,the Chinese government shows a strong commitment to bridge the gap between the United States and China.Despite,even though the conditions for CTS are currently not as good as in the United States,they still allow to start building the market of CTS.Moreover,as Chinas agricultural machinery industry develops,it is likely to become increasingly attractive for CTS.
For segmentation,it showed that tractors above200hp is currently the most promising segment and that other harvester and tractor segments significant potential but require the development of CTS better suited for them.
Hence,the first part of the strategy to develop CTS in China mainly focus on selling currently available CTS directly to the end users with tractors above200hp.As the same time,it will allow to gather further market knowledge and build awareness about CTS that will help approach OEMs later.After,this first step,it will be possible to introduce cheaper CTS which are adapted to four rows corn harvesters,wheat harvesters(8≤Feed Rate≤9),and tractors between150hp and200hp.Afterward,depending on the development of the first two steps it could be possible to develop other CTS to reach more segments.
Over the last two decades,Agrimax,a Canadian company,has expanded its material handling and construction businesses to China,but not its agriculture one.Thus,because of the recent changes to the Chinese agriculture industry,it could now be suitable for Agrimax to bring its agricultural business to China by introducing conversion track systerms(CTS)for tractors and harvesters.Accordingly,the purpose of this thesis is to provide an in-depth look at the Chinese agricultural machinery industry,analyze the market structure to see if it holds potential for CTS,and develop a marketing strategy to introduce CTS in China.
In this paper,the PESTLE framework is used to provide a thorough investigation about the key aspects which could influence the market conditions for CTS in China.Notably,the PESTLE framework is used to analyze political,economical,social,technological,legal,and environmental characteristics that could affect the introduction of CTS in China.In addition,the Porter Five Forces framework is used to develop an understanding about the dynamic of the agricultural machinery industry.For instance,it allows to identify the key forces influencing profitability and help derive strategic recommendations.While those two previous tools provide a relatively high-level understanding about the agricultural machinery industry,segmentation and targeting allow to identify the number of tractors and harvesters which could be compatible with CTS.
According to the PESTLE analysis,Chinas agricultural machinery is still30to40years behind the United States.Nonetheless,all the necessary conditions for developing the market of CTS such as suitable crops,large farmlands,knowledgeable farmers,and muddy soil are present.In addition,the Chinese government shows a strong commitment to bridge the gap between the United States and China.Despite,even though the conditions for CTS are currently not as good as in the United States,they still allow to start building the market of CTS.Moreover,as Chinas agricultural machinery industry develops,it is likely to become increasingly attractive for CTS.
For segmentation,it showed that tractors above200hp is currently the most promising segment and that other harvester and tractor segments significant potential but require the development of CTS better suited for them.
Hence,the first part of the strategy to develop CTS in China mainly focus on selling currently available CTS directly to the end users with tractors above200hp.As the same time,it will allow to gather further market knowledge and build awareness about CTS that will help approach OEMs later.After,this first step,it will be possible to introduce cheaper CTS which are adapted to four rows corn harvesters,wheat harvesters(8≤Feed Rate≤9),and tractors between150hp and200hp.Afterward,depending on the development of the first two steps it could be possible to develop other CTS to reach more segments.