External Environment
The current market condition support the sales of the electrolytic water machine, this paper will use PESTEL model to analyze the external environment for the product. 1. Political
From the macro view, the China’s five-year plan for 2011 to 2015 specifies that put the water treatment industry as the key supported industry. In the next five years, China will expand domestic demand and release the consumption potential of urban and rural citizens. (Zhu, 2011) Government will put more efforts on the environment protection to solve the unsafe drinking water and soil pollution. The Chinese government pays attention to the quality of water and emphasizes that related department should make plans to control the water pollution. In order to govern the water quality, government invests considerable resource such as capital, technology, and technical manpower. In addition, government has built industry standard for electrolytic water machine, which is never existed for other water system like barreled purified water. Among all the water products family, at present only electrolytic water system has a special industry association and the Ministry of Health is in charges of the association. It shows that the electrolytic water machine is at a high starting point. Government also defines the electrolytic water enterprises as high technology enterprises and affords subsidies for companies to conduct research and development. For example, 70% of R&D capital input is provided by government, the amount of subsidies is from hundreds of thousands of RMB to millions. 2. Economic
Due to the boosting economic development of China and rapid increasing income level of Chinese citizens, people now look for more safe and healthy life style. They like to choose the safe and high technology water purified machine to improve their living standard. Therefore, many people do not mind to spend more money to get a good electrolytic water machine in order to have a good life quality. 3. Social
In modern society, with the development of industrialization of our country, people eat high adipose and protein food, drink acidic water and breathe polluted air. They rarely do exercise and has some bad habits like smoking and alcohol. These living habits make our body into a big acid chemical plant and sub-health becomes more common. Since we cannot take the place of anyone to do exercise and control diet, the promotion force containing sunshine, air and water which make people passively accept can initiate a kind of scientific way of life. Therefore, electrolytic water system has become widely advocated health water electrical appliances. It will transform tap water into weak alkaline water, which can adjust and balance the modern people’ acidic physique tied to the excess nutrition, bad way of life and environment pollution into healthy and neutral physique. 4. Technological
The electrolytic water industry has set up the scientific research base, the scientific research base represents that the electrolytic water industry has specialized technical research institutions. In addition, there are several technological support from China and international professional institution. The first one is the license instruction “Healthy Water Word (2010) No. 0149” issued by the State Ministry of Health. The second support is the E authentication “European Conformity Assessment”. The third is that electrolytic water machine has got 11 national invention and utility model patent. Fourthly it passed the SGS testing of “Switzerland Univeral Public Surveyor”. Fifthly, it has ISO90000 International Quality System Certification. Lastly, the machine has passed the sanitary inspection by Chinese disease control center. This entire technological environment supports the development of electrolytic water machine. 5. Environmental
With fast process of industrialization of China, the pollution of environment becomes more serious in