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Group (A)
PROJECT
(Launch of china products decreased the quality and how affects local products)
3RD
NAME MOHAMMAD ALI IQBAL FAYAZ AHMED QAMAR JAVED SHEIKH MOHAMMAD YASIR SANA TARIQ MEHWISH BATOOL ANAM BOOTA SEEMA AHMAD
MBA SEMESTER
ROLL NO. M-85 M-86 M-89 M-95 M-74 M-76 M-67 M-108
Presented by:
Summary
Our research on highly usage of China products in local market instead of local products have following points. 1) Problem Statement: Launch of china products decreased the quality and how affects local products What are the effects of china products in our local market/Manufactures? Why China products sales increases and local products Sales decreases. Different variables are identified that help in making the theoretical framework.
2) Sampling Design:
We have taken the sample of 15 respondents and use simple random sampling technique. 3) Data Collection Method: Best suited instrument is used i.e. questionnaire. 4) Findings: According to our research china products are dominantly used by people because of better quality at fewer prices but some products are also there which have low quality due to this reason some people avoid the usage of china products.
INTRODUCTION
Conceptual issue: Downsizing of local products in market due to Chinese products. Usage of China Products & its impact on Market: High Competition in market Demand of local product decreased Local industry unable to compete Low pricing strategy
Classification of Variables
Pluses Cheaper Cost products Batter quality as compare as local products Attractive packaging & designs of Chinese products High Satisfaction with product Price Innovative Customer requirement Psychological effect develop about products Chinese Policies & economic changes has great impact on Pakistan economy Similar products with same strategy
Classification of Variables
Minuses
Any decrease in Chinas economic growth level can reduce the Pakistan economy Local manufactures unable to compete Some Customer buy bad products (Punishment) Price conscious instead of Quality conscious
LITERATURE SURVEY
Literature Survey
By using related databases, sources of secondary data, internet search we extract the relevant and desired information & reviewed all of the most recent articles on Pakistani People need and impact of China Products & Why china products sales are increases. Low pricing strategy No Advertising (No Promotion Strategy) High economy level High production at very lower cost
Literature View
As trade between Pakistan and China crosses the eight billion mark, Marylou Andrew investigates how Chinese goods and services are impacting the Pakistani market.
The Pak-China relationship goes way back to 1950, when Pakistan was the one of the first countries to officially recognize the Peoples Republic of China (PRC). This relationship has been extended to cooperation of all kinds, not the least of which is cultural exchange, investment and trade.
Chinese companies have invested heavily in Pakistan, and some sources are putting the total investment figure to-date at $25 billion, with the bulk of the money flowing into infrastructure projects such as roads and ports, oil and gas exploration and mining.
Trade is another important area of cooperation, and following the Pak-China Free Trade Agreement (FTA) in 2006, China has become Pakistans second largest partner with bilateral trade currently valued at over eight billion dollars. The balance of trade is of course heavily tilted in Chinas favor and the countrys exports to Pakistan include telecom equipment, electronics, motorcycle parts, plastics and many other items by means of the formal and the informal economy.
Although there are many advantages to trading with China, not the least of which is the import of goods that Pakistan is unable to produce, experts say that the influx of cheap Chinese products is driving less competitive local manufacturers out of the market. Regardless of the pros and cons, the impact of Chinese goods on the Pakistan market is inescapable and in this respect, the two areas under the microscope in this issue of Aurora are the telecom sector and the two-wheeler industry.
Chinese government has singed some sort of infrastructural development projects with Pakistan, which will benefit both countries in increasing trade and water management resources. High development percentage of China has produced a positive effect on Pakistani markets by providing cheaper goods than to American and European manufacturers. Chinas products are very much popular in Pakistani markets due to their prices and different choices in quality as according to peoples need.
Pakistan mostly gets benefits from China Pakistan relations and agreements but there are some negative effects of this relationship on Pakistani economy at micro-level. Pakistani local manufacturers are unable to compete with Chinese manufacturers with respect to price and quality as Chinese manufacturers are producing goods at very low price than local Pakistani producers. Some local Pakistani manufacturers are changing their businesses, as they are unable to continue manufacturing because Chinese products are still cheaper in their markets. Government of Pakistan is also providing facilities to those traders, which are doing business with China. Due to these reason small Pakistani manufacturers are suffering badly.
PROBLEM STATEMENT
A clear, precise and concise statement of the issue that is to be investigated with the goal of finding an answer or solution. So, our problem is that Launch of china products decreased the quality and how affects local products
THEORATICAL FRAMEWORK
Theoretical framework comprises of following steps: Identification of Variables Relationship among variables Nature & Direction of Variables Explanation how we consider this relationship may exist. Schematic Diagram
1- Identification of Variables
Identification of the dependent, independent and intervening variables have been done in the theoretical framework.
5- Schematic Diagram
INDEPENDENT VARIABLES DEPENDENT VARIABLE
Price conscious customer Middle & Lower level Customers Target Market Making Products according to people need Similar & Multifunctional Products Low Price Strategy High usage of Chinese Products
Cheaper Cost
INTERVENING VARIABLE
Price Conscious People
MODERATING VARIABLE
OBJECTIVES OF RESEARCH
We all are acquainted with the information that why Chinese products sales & usage increased in last 10-15 years. A hefty community of middle & lower class can purchase cheaper cost products due to their low income and satisfaction. This indispensable objective of pour research project was sort out the reasons why launch of Chinese products affect our local market/ local manufactures product? Why each & every age group peoples prefer to purchase Chinese products? Why customer can purchase Chinese products instead of local products?
RESEARCH DESIGN
Design Strategy
Category
Research Type
Description
* Correlational
Study Setting
Purpose of Study Time Dimension Unit of Analysis
* Non-Contrived
* Descriptive * Cross Sectional * Individuals
Measurement
Scaling
Response Formats
Structured Formats Questions are prepared by using levels of measurement Nominal Scale Group Ordinal Scale Group Interval Scale Group Ratio Scale Group Unstructured Formats Open ended questions is asked at the end of the questionnaire
SAMPLING DESIGN
In sampling design, we have taken the sample of 15 respondents. The sampling technique used here is simple random sampling i.e. (Probability Sampling)
Interviews were selected on random basis from the population to avoid biasness and encourage probabilistic response. So, we have used simple random sampling.
SUMMARY OF FINDINGS
From our data analysis we have summarized the following points: 60.2% people income is Rs.200 PKR/day they can purchase Chinese products because products are cheaper. 55.7% purchase in given income because Chinese products have cheaper cost. 40% people used Chinese products for their personal needs. 33% people purchase Chinese products according to product multi-functions & similarity of products. 67% people purchase due to low price range, Similarity with local products. 63% people purchase same attributes but on low price.
CONCLUSION
While conduction this research project, we collect data about Chinese products sales in our local market. The basic thing is that Chinese products cost is cheaper because economy level of Chinese industries are very high and Chinese raw material cost is very cheaper also Chinese labor cost is very cheaper . So, due to cheaper cost products china grasp our local market because the Chinese market analysts knows what Pakistans people needs and Pakistani customers economy level and they are making goods on very low price strategy. Pakistani local manufacturers are unable to compete with Chinese manufacturers with respect to price and quality as Chinese manufacturers are producing goods at very low price than local Pakistani producers. Some local Pakistani manufacturers are changing their businesses, as they are unable to continue manufacturing because Chinese products are still cheaper in their markets.
Analysis
Price Analysis
Low
High
Very High
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Appendix Questionnaire
3)
4)
i- Very High ii- High iii- Reasonable iv- Low 5) iiiiiiiv6) How much you are satisfied with Chinese products. 25% 50% 75% 100% Why you buy Chinese products instead of local products.
iiiiiiiv-
High Price, High Quality High Price, Low Quality Low Price, Low Quality Low Price, High Quality
7) Launch of china products decreased the quality and how affects local products Please give your kind comments on this statement.
8) What are the effects of china products in our local market /Manufactures? Please give your kind comments on this statement.
Unstructured Questions
1) 2) 3) 4) 5) How china know about the demand of our people? Why we purchase Chinese products? Chinese products are costly instead of local products? Do you think Chinese products are bad? How china captured the quality & quantity of products?
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7)
Unstructured Questions
8) Why in China labor cost is cheaper?
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10) 11) 12) 13) 14)
THANK YOU