-1-SHA-4301-200099-01-01RolandBerger&PartnerGmbH–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Delhi–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–KualaLumpur–LisbonLondon–Madrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–ZurichTobecomealeadingbrandinthewaterheatermarketinChina–Discussionpaper–BoschThermotechnikPlochingen,Germany,January16th2000-2-SHA-4301-200099-01-01Thisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentPageA.TheWTOentryofChina-atwo-edgedweaponfortheforeigninvestedcompaniesintheconsumerdurablesectorB.SalesandmarketingofconsumerdurableinChina-KeyfindingsC.AnalysisofBoschTTwaterheaterbusinessinChinaC1.TheChinesewaterheatermarketwillbecomemoreattractiveduetothegreatgrowthpotentialC2.Inordertoexploitthemarketpotential,BoschTTshouldreconsideritssales&marketingstrategyinChinaD.RolandBerger&Partners—competenceandqualified??partnerforBoschTT-3-SHA-4301-200099-01-01A.TheWTOentryofChina-atwo-edgedweaponfortheforeigncompaniesintheconsumerdurablesector-4-SHA-4301-200099-01-01InordertoentertheWTO,ChinesegovernmenthasagreedtofurtherliberalizeitsmarkettoforeigninvestorsandmarketersMainContentMainContentResponsibilitiesofChinaResponsibilitiesofChina•Openpost-restrictedmarketsectorstoforeigninvestors,e.g.Telecommunication,Distribution,Aftersalesservice,internet,Banking/Securities/Insurance,etc.•PermitforeigninvestortoholdthemajorityshareofthejointventurePermssionofnewmarketaccessEleminationofnon-traiffbarriers•Abolish70barriersimmediatelyaftertheentryofWTO,andremovetherestofabout300barriersby2005•Decreasetheaverageimporttariffofindustrygoodsfrom24.6%to9.4%•Cuttheaveragetariffofagricultureproductsfrom31.5%to14.5%•Deductthetariffofautomotivefrom80%~100%to25%till2006,andtariffofautopartsto10%ReductionofTariffImprovementoftheenviromentfortradingandinvestment•Providebetterenvironmentintermsof-Protectionofpatents-Judicialinspection-Transparencyoflawsandregulation-Nationaltreatment-5-SHA-4301-200099-01-01Examplesofcurrentnon-tariffbarriersForforeigninvestmentForforeigninvestmentFortradingFortrading•Licensingandquotas•Statetradingandtendering•Offset(paymentthesellertothebuyertosecureprocumbentrelationship•Transferandprotectionoftechnologies•Exportperformancerequirements•Tradeandforeignexchangebalancerequirements•LocalcontentrequirementsBack-up-6-SHA-4301-200099-01-01DifferentindustrybyprotectionandinternationalizationextentDifferentindustrybyprotectionandinternationalizationextentComparisonwithotherindustrialsectors,consumerdurablewillbelessimpactedaftertheentryofWTOPublishinghighlowlowhighlowmiddlehighPharmaceuticaltransportationConsumerdurableagricultureenergyDailyconsumerTextileconstructionTelecomAutofinancedistribution1):Evaluationofprotectionextentofacertainindustryhastwocriteria:oneismarketentrybarrier,theotherisprotectionextentineachlinkofvalue-addedchainofthisindustryinternationalization1)ProtectionextentImpactextentImpactextentReasonsReasons•Thelocalmanufacturersstilldominatedthedomesticmarketwiththeadvantageoftheirnationalwidesalesandservicenetw...