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Problem No. 1 Group Z

Problem No. 1 Group Z. The best entry mode. Flow of the Presentation. General Comparison of CJV, EJV and WOS Analysis in Management Aspect Analysis in Marketing Aspect Case Study Conclusion. General Comparison of Capital, Profit &Risk. Management Aspect.

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Problem No. 1 Group Z

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  1. Problem No. 1 Group Z The best entry mode

  2. Flow of the Presentation • General Comparison of CJV, EJV and WOS • Analysis in Management Aspect • Analysis in Marketing Aspect • Case Study • Conclusion

  3. General Comparison of Capital, Profit &Risk

  4. Management Aspect

  5. Conflicting Objectives in Chinese Joint Ventures

  6. Conflicting Objectives in Chinese Joint Ventures

  7. Human Resources Management

  8. Marketing Aspect

  9. Target Customer • Our Target Customer : • HK firms who want to move their office to Shanghai • Do not provide any service for local firm • »»»do not need any local customer base • »»»prevent the threat of losing customer to the partner • Wholly-owned > Equity JV, Contractual JV

  10. Competitor • After we investigated 111 local removal companies • We found that: • 11 firms had provided removal service form HK to Shanghai • only a few number of company had set up their office in China • So, the competition is Low • »»» it is better to entering this market as soon as possible • »»» to enjoy first-mover advantage • Wholly-owned > Equity JV, Contractual JV

  11. Market Potential • The number of new established HK-oriented firm in Shanghai : • In 2000, 419 HK firms • In 2001, 479 HK firms • No.1 - Total investment • - Number of firms • »»» The market size is Huge • So, it is better to established our own office in Shanghai as soon as possible • Wholly-owned > Equity JV, Contractual JV

  12. Supplier • Our Service: • Provide a ‘package deal’ for our customer • We need: • Local property knowledge • Shipment team • Decorator

  13. Supplier • Our Service: • Provide a ‘package deal’ for our customer • We need: • Local property knowledge -------- employ a local staff or local property firm • Shipment team -------- still using the existing supplier • Decorator -------- employ a local decorator • Wholly-owned> Equity JV, Contractual JV

  14. Cultural Difference • The cultural difference between HK and Mainland is small • Do not need any local customer base • The Legal system has become more comprehensive and mature • after entering WTO • »»» ‘Guanxi’ and local network is not so important • Wholly-owned = Equity JV = Contractual JV

  15. Case Study

  16. iNFOiSLIVE Corporation Limited (iiL) Interviewee: Josephine Yim Position: Assistant General Manager of Beijing iiL Office Office Address in Beijing:Rm 521, zhouji building no.16, ande lu, dongcheng, Beijing 100011, China Date of Interview: 11/11/2002 Format of Interview: Through Telephone Interview

  17. Case - iNFOiSLIVE Corporation Limited (iiL) • iNFOiSLIVE Corporation Limited (iiL), • Leading mobile entertainment application developer in the Asia-Pacific Region • Established in 1999 in Hong Kong. • Dedicated to the development of mobile entertainment applications and platforms with SMS/EMS, WAP/GPRS, KJava, i-mode and embedded systems.

  18. Case - iNFOiSLIVE Corporation Limited (iiL) Why choose this company? • Small medium enterprise – about 30 employees in HK office • Have not much capital • Similar industry – service industry • Have joint venture experience in foreign market, only choose China be their first WOS

  19. Why don’t choose EJV or CJV? Concerning Problems: • Finding right partners • Chinese enterprise still not well-developed • Time for negotiation • Managing problems • Stolen of Customer Base • Share of Profit

  20. Why don’t choose EJV or CJV? • Risk sharing – Foreseeable market demand • Not familiar with the market – • china now is easy to find market information and • have well gov’t regulations on foreign investment.

  21. Why choose WOS? Benefits: • Profit • Easy to manage • Protect the customer base • Easy to establish in now china regulations for foreign investment

  22. Conclusion • Analysis of management and marketing • Experience of a successful company • Wholly-owned Subsidiary is preferred for establishing a company in Shanghai

  23. Reference • Beamish, P.W. and Killing, J.P. (eds) 1997. cooperative Strategies: Asian Pacific Perspectives, SF: The New Lexington Press – Various articles under part two: Formation of Cooperative Alliances • Tsang, Eric W.K. 1998 Foreign Direct Investment in China Journal of General Management. 24, 1, 15-34 • Vanhonacker, Wilfried. 1998. Entering China: An unconventional approach. Harvard Business Review (March/April): 130-140 • Child, J. & Faulkner, D. Strategies of Cooperation. Oxford: Oxford University Press, 1998. • http://www.yp.com.hk/business/ch/html/index.asp

  24. The End 00014049D Ivy Tse 00212768D Aily Lam 00250538D Davis Heung 00253308D Ming Fan 00291790D Kim Wong 00354114D Michelle Hui

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