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Corporate strategies and Business Plans are continuously modified and updated based on the market environment. Thus, companies which have been doing business in China for a number of years will change corporate strategies because their business environment has changed.
Several examples include:
- Western companies subcontracting the production of finished goods in Asia may decide to establish their own facility in Asia in order to capture a higher profit margin and obtain greater control over product quality
- Western company sourcing from Asia may decide to establish their own office in China in order to have Quality Control, procurement and forwarding capabilities on-the-ground.
Applying our knowledge of how to best operate in Asia and our resources, East West supports a company's development and execution of a market entry strategy. For many companies entering the Asian market but are not familiar with the business environment in their industry, a Market Assessment report is used to gather this critical information.
To develop and execute this entry strategy, East West works directly with the client in the US and Asia to craft a strategy to meet the client's specific needs. The strategy can include a variety of approaches, including:
- Sourcing raw materials and finished goods from Asian suppliers
- Subcontracting and distribution agreement with Asian vendors
- Opening an Asian office (Quality control, sales & marketing, procurement and supply chain responsibilities)
- Establishing a manufacturing and distribution plant
- Entering a Joint Venture with a Western or Chinese partner
For those companies wanting to open an office in China but do not want to incur the Business Formation expenses and daily administrative responsibilities, East West provides the China Presence Package which allows these firms to place their personnel in our Shanghai office.
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