Market analysis and business opportunity evaluation of entering Chinese medical waste treatment industry

Abstract

China’s ever-growing population and the rapid increased economy have created the medical waste crisis. Chinese government has promulgated many regulations and policies to limit people’s negative actions of dealing with medical waste and to encourage the development of business in medical waste treatment industry. This is mainly because the money shortage and the relevant technology backward in China. However, due to the fact that medical waste treatment project requires a long-term operation and a relevant stable payback during the contract period, Finnish investors who are able to provide from start-to-end disposal solutions can meet this new-starting business opportunity. This study provides a market analysis of entering Chinese medica waste treatment industry for Finnish investors. Background information of medical waste crisis in China is introduced. The competitive advantages of Finnish company are discussied following the introduction of medical waste management model respectively in China and Finland. Conceptual discussion helps readers identifying the key factors, which can significantly influence the market. Associating with the described concepts, the analysis of relevant stakeholders in Chinese medical waste treatment market is explored, which helps readers with recognizing the entry barriers and market challenges. Based on those analyses, this study recommends Finnish investors establishing a joint venture company with a local player, and the relevant business model is proposed in the last chapter. However, this study only illustrates the pre-actions for Finnish investors, therefore, further research is necessary for Finnish investors building up a steady business in China.