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You are a German company and leader in airport consulting and management across the South-East Asian market

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Case Study: Airport Consulting in China

You are a German company and leader in airport consulting and management across the South-East Asian market. Your main product "Passenger Route Development" for newly established airports. So far, everything is running well and your company has a great worldwide reputation. Even markets where you are not currently present know at least what your offer is. Your team comprises of 20 consultants (10 senior / 10 junior).

The Chinese market was up until now closed for foreign companies but in 2022, a change of law takes place.

With a little bit of preparation for approx. 1 year you are finally able to enter the Chinese market in 2023. The market is completely new to you. You will be competing with two other companies, which also, according to rumours, will enter into this new market with the same product.

China is following a greater (national) aviation plan that affects the whole country. Besides its 30 existing airports offering passenger services, it is planning to establish another 279 airports only for cargo services, 209 airports for passenger services and 100 airports with mixed services across the country in the next 20 years.

The country is split into several regions with own municipalities. Some municipalities follow a quick execution of the national aviation plan and want to have quick solutions; others do not have money and try to the get lower prices or might postpone the airport constructions.

The current average market price for one Route Development Project is 1500 EUR per person day. You would need one Senior Consultant and one Junior Consultant to execute the project. The length of a project is 2 month and the project team will work every working day on deliverables during the time.

Please continue with the given information and prepare a PowerPoint presentation (max 10 pages). You will have approximately 20 minutes to present your findings

1. Give an indication of what potential the market has? How many projects could you do per year?

2. Please state some ideas for a market entry strategy / what would be your approach?

3. Please state some risks and opportunities for the company and for the team which could arise

4. What other products or services would you offer or try to develop for the airports?

5. Do you feel confident with the given information? What is missing from your perspective?

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