Boeing’s first overseas factory to be built in China’s Zhoushan

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Boeing and Chinese aviation manufacturer Commercial Aircraft Corporation of China Ltd  will start to build a Boeing 737 completion center  Zhoushan,

Zhoushan has the largest fishery in China and it is an island city,a eastern city. At the end of March, the company will make the schedule for its first delivery in 2018.This is Boeing’s first overseas facility as part of its 737 production system, and designed to deliver 100 Boeing 737 planes a year.

In the joint-venture completion center, Boeing’s 737 aircraft will be installed with flight entertainment systems and seats. The plant in Zhoushan, 287 km southeast of Shanghai, also provides services such as coating, repair and maintenance of Boeing aircraft.

To accommodate aircraft manufacturing in Zhoushan, Putuoshan Airport in the city is undergoing a 750 million yuan ($108 million) expansion to become an international airport. For supporting Boeing,  Zhoushan will also develop an entire industrial chain for aircraft manufacturing, with the capacity of assembling, delivering and modifying 600 aircraft a year by 2025.

Why Boeing chose Zhoushan? I think China as one of the largest market for Boeing, every four aircraft, there is one for China. Also, Zhoushan has its port and pier, which is convenient for transportation.According to the report, the other reason is the cooperation of the Zhoushan government. The government prepared and contacted with Boeing years ago and dedicated to develop its local manufacturing industry.

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Can going international save the NFL?

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Is it a secret that NFL viewership is declining in the US?

Roger Goodell would have us believe that people stopped watching this year because of the presidential election, but numbers have been declining for several years now for several years now.

The fact of the matter simple: millennials are watching less sports as a whole and the NFL is taking the biggest hit. This generation prefers soccer and mixed martial arts. The NFL is becoming too long to watch and a little watered down, and that’s coming from a 20 year football fanatic!

So what does one do when they’ve lost the interest of the most home crowd? They go away. Internationally.

The NFL has recently started scheduling games in London as well as Mexico City in an attempt to increase the outreach that the NFL has in the world.

I was initially skeptical of this strategy. In countries like England and Mexico, soccer is the sport of choice, and with the increasing population millennials who prefer soccer, it just seemed like a no-brainer that the NFL would fail.

This wasn’t the first time that I’ve been wrong. Every game in London sells out . Over the last several years, NFL viewership in England has increased as it slowly builds a following.

The Mexico City game is a newer one, but the optimism is there as well. With new renovations to their stadium, the NFL sold out its first game in 15 minutes.

I don’t know if this will be enough, but it seems to be pretty compelling evidence that international expansion is worth it.

Who knows. Maybe the NFL will permanently move overseas one day…

 

 

 

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Higher Education and Global Brands: Marketing In 2022

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Higher education institutions are currently operating within an unsustainable system. The current national student loan debt has breached the $ 1 Trillion mark, with over 50% of that debt either in default or deferment. To put some perspective on this debt, we have to consider the rising costs of higher education in a relative manner. Since 1978 the price of a college education has increased by a remarkable 1,120% YIKES! During this same period the cost of medical care, which we all greatly consider to be outrageous, has risen by 600%, or roughly ½ of the college education.

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Higher education is rapidly approaching the problem that many traditional businesses have been facing with the increase in ecommerce: how to justify the investment of brick and mortar facilities and high professor’s salaries when it’s very possible that we can accomplish the same goals online, or can we? A recent, albeit small, case study with online education provider Udacity showed how poor the online results can be. Out of 213 students enrolled in 3 math courses, the results were quite pitiful. Elementary Statistics: 50.5% passed. College Algebra: 25.4% passed. College Mathematics: 33.8% passed. When we compare this data with the same courses from SJSU (Udacity’s physical counterpart) on campus we can see very different level of success: with Elementary Statistics: 76.3% passed. College Algebra: 64.7% passed. College Mathematics: 45.5% passed.

Now what in the world does this data have to do with international marketing you say?

Harvard, one of the most recognizable brands in international higher education has attempted to tackle the issue through a test of attendance. Harvard University has revealed that it secretly photographed some 2,000 students in 10 lecture halls last spring as part of a study of classroom attendance, an admission that prompted criticism from faculty and students who said the research was an invasion of privacy. Harvard found that only 60% of their students were attending class at any given time:

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Harvard’s takeaways from this study are very much in line with how this magnificent institution will be marketing itself in a future where, according to the national center for education statistics, only three million more students are expect to be enrolled in college by 2022, which represents a major decline in growth for the industry. Harvard, like many higher education intuitions, will need to market their services to a global customer base. In order to accomplish this, Harvard must find better measure of learning and teaching. They will have to measure affective, cognitive, and most importantly, behavioral engagement. Lecture attendance is the measure of behavior engagement, and Harvard’s data shows that they are not currently meeting the expectations of their customers, 40% of whom do not find it necessary to attend lectures.

In a diverse global marketplace where culture often acts as a significant determinant for consumer preference, data can be the solution. Harvard, and many other schools, must find a way to correlate student activities on campus (attending lecture, using office hours, and finding extracurricular activities) to the success rates of students, without secretly taking pictures of classrooms without participant consent. With this large and small data, educational institutions could better cater their services to actual student needs, which would greatly increase engagement, which would lead to better learning and more value for the large investment of higher education. Drew Gilpin Faust, President of Harvard offered a word of advice on the subject: When we decide what to measure, we signal what counts.” When schools begin to take engagement more seriously, they will be able to define and then convey the value their education offers, in more ways than “this school will get you a good job” or “our network is the strongest in the world.”

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Sports: The Industry Every Country Loves

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Globally, sports are a big deal. Almost every country in the world has some affiliation or influential sports culture that runs deep in their society. Whether you are watching a cricket match in India or a football game in the United States, it’s obvious that the people love this industry and the profits are there to prove it. A recent report made by PWC states that the global sports industry will grow to over $145 billion dollars in revenue by 2015. Sporting events that are set on a global stage, like FIFA’s World Cup and the Olympics, are in a category all of their own when it comes to generating profit and boosting an economy.

Here are some outstanding statistics from this summer’s World Cup in Brazil:

5,154,386 attended FIFA Fan Fests in Brazil during the World Cup, with Rio de Janeiro’s spectacular Copacabana site attracting 937,330 – the highest number in any individual city.

7.2 billion USD in tax revenue shall be received by Brazil as a result of investments in the 2014 World Cup.

3,429,873 was the total attendance for the 64 matches, the highest recorded at any World Cup since USA 1994. The average crowd of 53,592 was also the highest in two decades.

16,746 printed media accreditations were produced during this World Cup.

3,127,674 food and beverage transactions took place at the stadiums over the course of the competition.

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These numbers are phenomenal and show how big of a business sports really is. Sporting events at this caliber and even local events with big followings are a great marketing platform that seems to be underutilized by many businesses. Although there is steep competition for sponsorship rights for most athletic tournaments, there are various other marketing tactics that a business can utilize to piggy back on the hype of sporting events.

For example, if you own a restaurant, you can theme an entrée around a sporting event or give specific discounts during a game to encourage people to stay and eat. If you are a brand manager for a consumer packaged good company, you can look for athlete sponsors or change the packaging to a relevant sports theme. There are many ways a company can ride the coat tails of the sports industry and they should look to do so whenever it’s possible and fitting. You don’t need to be Nike or Adidas to make money off this industry.

It is true that not everyone is a sports fan, but if I were betting on a global industry to help support a brand, I would place my bet on the sports industry. It appeals to various demographics and psychographics and it is an industry the brings countries together. This is very important as globalization continues to spread and as more and more societies become homogenous in their wants and needs.

If you want your product to be a true win, don’t forget to place your ad where the sports fan will see it!

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China: The Land of 1.3 Billion Consumers

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Over the decades, multinational firms have looked abroad for inexpensive sourcing and cheap labor. One of the main targets for these multinationals is China. For decades, companies have outsourced their labor to China, which has historically been known to have a vast workforce and strong logistics infrastructure. Compared to a country like India, who also has a large population, the people of China are more educated with a literacy rate of 92% compared to India’s 61%. China is more connected, with their 389 million Internet users compared to India’s 61 million. The reasons above are strong indicators as to why China has been a dominant partner for multination firms across the globe.

China has held this position for a long time, but as the country becomes more developed and hyper-connected, labor costs and the costs of procurement are becoming expensive compared to other countries in the area. There are currently over 20,000,000 textile workers throughout China. This group of workers has an aging population and human resource departments are having difficulties filling positions in this sector once the elderly leave the workforce. Reasons behind this include: more educated people that want better paying jobs, people that are aware of the finer luxuries in life and want to take advantage of them, and the one child rule that has crippled the country of some of its younger labor force.

As the country becomes more and more urbanized and wealthy, so do its people. By 2030 it is estimated that 1 billion people will live in the urban cities of China. At this same time, there will be over 221 cities with over one million people throughout the country. This urban expansion has caused companies to move their operations to less costly countries, like ones in South East Asia.

This growing group of consumers gives multinational firms a new set of reasons why they want to enter into the China market. Getting close to this demographic is very important and could be looked at as imperative to sustain long-term success in a global market. Companies want to localize their product offerings for these people and gaining access to this growing market is a goal that many companies are trying to reach. Although China may not be the go to country for outsourcing manufacturing needs, it’s 1.3 billion consumers is justification to remain close to this market and infiltrate it before the domestic and international competition.

Check out this short video from MicKinsey China on the new consumer in China:

 

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