BUSS 4 RESEARCH THEME - CHINA

ADVANTAGES - MERGERS

• 2006 Inbev, the world's largest beer brewery, acquired the whole of Fujian Sedrin, a major brewer in southeast China's coastal areas
• Deal worth 5.886 billion Yuan ($755 million)
• Inbev has become one of the largets brewers in China
• Large market share from east to south China
• Indicates a market strucutre of oligarchy competition

• Increased Heinz's annual sales in china to about $300 million
• Enabled them to enter China's fast growing soy sauce market which is worth $2 billion

• Wal-Mart is the second largest retailer in China
• Considers China an area of future growth
• Retails sales could reach $5 trillion by 2016
• Growth in sales is expected to come from China's growing middle class
• Also government policies that encourage domestic comsumption
• Wal-Mart expanded its online business in China by purchasing 51% of Yihaodian an e-commerce business.
• Wal-Mart plans to open 30 new stores in China in the next six months.
• Long-term plans include the opening of 100 new stores over the next three years

• Tom online gaining 51% of the deal and eBay the rest
• Western media firms have cut their presence in China facing strong local competition
• eBay can exploit this emerging market safely and still continue strong market share in the west