Domestic Art Auction External Environment Analysis

In the past 2010, There has been 16 cases of auction exceed one hundred million in Chinese domestic art auction.There has been unprecedented prosperity in the domestic art auction.However,as for a new form of market,the accumulated problems and intensification of contradictions were indicated behind this unexpected vigorously growing. The paper will do research in'corporate strategic environment'and'industry environment', analyse from the current situation of the art auction,the status of environment, environmental impact on the market, loopholes exist in the environment,how to improve the environment and how to regulate the operation of the art auction company in the current environment and achieved an excellent result. It will also conduct a more detailed and comprehensive argument for this series of interlocking problems.This paper employs the PEST analysis model and'five forces model'.It utilize PEST analysis model to analyse the'corporate strategic environment' (macro-environment) of the domestic art auction in the external environment.It explores the related economic environment political and legal environment and technological environment status, effects, vulnerabilities and the standard approaches for the development of the domestic art auction market.In the analysis of the'industry environment' for the external environment, it uses the Michael·Porter's'five forces model', analyse from the five forces:the existing competition situation of the industry,the threat of new entrants, substitute products, bargaining power of sellers, the bargaining power of buyers. These five forces can decide the competition situation and integrated capability.