4.Discussion of the results
In the discussion chapter, there will be focus on the key findings that are done through the empirical research so that there could be the analysis so the situations that the foreign market entry should be done for Chinese elderly market or not. There was the focus on the barriers and other issues so that the current research on the industry can be made. However, the recommendations and final-conclusions are made in the discussion chapter through the self-evaluation and through the research that is conducted .
4.1 Key findings
As China's aged care sector in China is shifting quickly and presenting substantial potential, the elderly population will have an increasing influence on the future of the country.
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From foreign wholly owned enterprise, acquisition, joint venture, to licensing and franchising. Moreover, foreign investors are allowed to make interrelated investments in elderly care in China, which allows them to establish extensive, chained operations. Yet, foreign companies are not allowed to offer services reimbursed through reverse residential house discounting (reverse-mortgage business). Each entry mode has its own benefits and risks, however, based on the interviews conducted and the current situation of the market, joint venture seems to be the entry mode for this market. As it it’s crucial to have a local partner with extensive experience and knowledge to do business in China. Having said this, it must be noted that there is no one approach for all companies to enter this market. Which entry mode a company chooses also depends on the company’s size, culture, organizational goals and vision.
However, success in China’s senior care industry is far from guaranteed. Cultural views, blurred government policies and rules, and high operational costs are all major obstacles to the success of foreign investors. The filial piety of Confucianism, which results in a disgrace against sending the elderly to a nursing home, still functions as cultural barrier in the market. Likewise, low respect for nursing specialists as well as a lack of professional training institutions lead to problems for investors who
What impact will the prospect of deprivatization have on investment by managers of privatized firms?
On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.
The new eldercare service model must be one of inclusion. We can no longer afford to marginalize any group of seniors. –Author
aging populations will put big financial burdens on the government as older people will need more health care and translation services. More home care. As the number of elderly people increases, the health care system is short of medical doctors, nurse. So it can be said that doctors and nurses are a great field of study to attract
By 2060, ¼ of the United States population will be 65 years and older. To put this in a numbers perspective, the population of Americans 65 and older will double from around 46 million today to 98 million by 2060 (Mather, Jacobsen, & Pollard, 2015). With direct correlation to population trends, the number of individuals using long term care services will also double from 13 million in 2000, to 27 million people in 2050. 35% of the population 65 and plus will eventually enter a nursing home (Friedman, 2015). The average annual rate for a private room in a nursing home is around $90,000 (Effros, Hsu, & Levy- Storms 2017). These high costs place an significantly large burden on the older population who must
This section will outline the opportunities and challenges facing a firm in aged care Industry by using Population, Productivity and Participation, which are key drives of economic growth.
Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China in the 1980s and 1990s taking the form of joint ventures (Qui, 2005, p. 47). The Chinese company, as well as the foreign investor, has since 1978 been drawn to the joint venture form. Walsh, Wang & Xin (1999) note that from the Chinese
Australia is one of the most advantaged aged care systems in the world. The increasing numbers of ageing population is one of the major transformations being experienced by
Experience working in the field of health care lends insight to the growing needs of the older adult population, and the barriers which impede our capacity to meet them. As the Baby Boomer age is approaching older adulthood, the rise for financial,
I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.
In 2017, the world population is at 7.5 billion people. China is the most populated country in whole world. It has “1.379 billion” (Google) people making it the largest populated country. China is also the most largest aging population making it have a high life expectancy and the high accelerating aging rate in the world (Zheng, 2012). China has advanced with technology and also with age. Only “three decades ago, only 5 percent of the populations was over 65; today, 123 million people, or 9 percent of the population, are over this age which a report released by the government states that China will be the world's’ most aged society in 2030” (Huang, 2013). Since, China is the most largest aging population this means that less people are dying and more are living. Since, more people are living this means that need of long-term care, health insurance, adjustment of policies and how to make everyone comfortable living. China is the only country that has an older population exceeding 100 million and annually increases at a rate of 3.2. A dependent territory of China is Hong kong that has “7.347 million people” (Google). Hong kong also has a fast growing aged population. Hong kong is also trying to adjust their long-term care system, pensions system and policies to accommodate everyone living situation.
Wang found that there was a major difference about caring for elderly between American families and Chinese families. In general, in the American families, once the children are independent or get married, they distinguish their finances clearly from their parents. However, in China, according to the article of “Gender and Family in contemporary China,” sons are recognized as permanent family members in the natal family; even if they get married, they will contribute to their parents financially in a life-time basis (Xie, 2013). So, children are responsible to take care of their parents and support them financially. This is an important element called “Xiao” in Chinese
The market size we are dealing with is currently large, and only growing. According to J. Davis: “The elderly population is the fastest growing niche market in the world- and its only getting bigger! By year 2030, the US elderly population will have doubled, reaching in excess of 70 million!”
The role of state in China has been changing after 1990s, but the state keeps the dominated status in the care regime. As Jing (2009) suggested, driven by the ideas of ‘small state’ and ‘indirect state’, contracting out part of the services to private institutions is a reasonable choice for the state. The government document of ‘Promoting home care services’ (2008) pointed out that the role of government is to establish strategic plans, provide land and facilities, finance investment, set up standards, and monitor and evaluate instead of direct providing services. Chinese government has established laws and policy documents for the care system, including ‘Construction older care service system’ (Ministry of Civil Affairs, 2006), ‘Comments on promoting home care for older care’ (Ministry of Civil Affairs, 2008), ‘Twelfth five-year plan of national economic and social development’, ‘Construction plan of social care for older people (2011-2015)’ (Ministry of Civil Affairs in China), ‘18th CCP Congress Report’ (2012), etc. It’s critical for the state to set up standards and regulate
Definition: An investment made by a company or entity based in one country, into a company or entity based in another country.