Role of Strategic Alliances in the Business Growth of China

Topics: Investment, Productivity, Economics Pages: 10 (3608 words) Published: October 21, 2010
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China Strategic Alliance|
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The China Investor specializes in arranging strategic alliances The most successful companies are those adept at strategic alliances. Strategic alliances are the fastest, least risky and potentially the most profitable way to go global and gain new skills. A survey of corporate executives indicates that over 80% believe that alliances will be a major factor in their business growth. Within the next five years the value of business alliances is projected to exceed fifty trillion U.S. dollars. Strategic Alliances are about gaining leverage and sharing risk. When change is so intense that internal resources are not sufficient for success, strategic alliances provide the needed resources to capture new market share, improve time to market, add new skill sets, and to gain entry into new international markets. The Strategic Alliance Process Successful strategic alliances begin with an in-depth process in which major elements of the potential alliance are fully analyzed and then implemented. This starts with a comprehensive understanding of the Corporate Vision or Objective; followed by the determination of the strategic targets by market segment; Analysis of the technology / market trends by treats and opportunities; determination of the product/technology/market gaps to be filled; analysis of alternatives for achieving strategic objectives; identifying and evaluating potential strategic alliance partners; negotiating the actual strategic alliance agreement; setting up the strategic alliance management structure; and finishing with strategic alliance goal attainment reporting to the strategic alliance governance board. Key Factors Influencing the Formation of Strategic Alliances.Research and studies show that the major factors that companies enter into strategic alliances are: 1. Time to market 50% 2. Market factors 42% 3. Technology 8% Marketing factors can be further broken as: 1. Market entry into established segment 33% 2. Market / Product positioning 25% 3. Access to distribution channels 25% 4. Market entry into new/emerging markets 17% The China Investor's Experience and Expertise in Arranging Strategic Alliances in China Our business successes and experience in Greater China includes numerous equity and co-operative joint ventures, wholly foreign-owned and foreign holding company investment projects across a wide range of industries, including telecommunications, petroleum, agriculture, retail and wholesale distribution, pharmaceuticals, retail and distribution, residential housing, semi-conductor fabrication and design, food products, motor cycle and automobile products, consumer electronics products, industrial goods, software licensing, manufacturing technology license contracts, joint R&D lab arrangements, co-development agreements, and trademark licensing and enforcement, etc. It is important to note that vast majority of these successes have been accomplished for companies, joint ventures and offshore trusts in which Pacific Investors is a stakeholder. The project structures range from green field investments through mergers and acquisitions and include numerous restructurings, divestitures and liquidations of Sino-foreign joint ventures. We have also advised on general services contracts, consulting contracts, employment contracts, management contracting arrangements, distributorship, re-seller agreements, representative agreements, equipment trial agreements, OEM contracts and service sub-contracts and other cross-border trade and investment transactions. Because of our many decades of Asia and Greater China experience and relationships we have been asked by American, Australian, European and Latin American companies to assist them with the establishment of manufacturing and equity joint ventures, holding companies, wholly foreign owned enterprises, bonded zone companies and representative offices, etc. We have also advised numerous foreign...
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