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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
Problem No. 1 Group Z

The best entry mode


Flow of the presentation
Flow of the Presentation

  • General Comparison of CJV, EJV and WOS

  • Analysis in Management Aspect

  • Analysis in Marketing Aspect

  • Case Study

  • Conclusion








Problem no 1 group z

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


Problem no 1 group z

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


Problem no 1 group z

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


Problem no 1 group z

Supplier

  • Our Service:

  • Provide a ‘package deal’ for our customer

  • We need:

  • Local property knowledge

  • Shipment team

  • Decorator


Problem no 1 group z

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


Problem no 1 group z

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



Problem no 1 group z

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


Problem no 1 group z

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.


Problem no 1 group z

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


Problem no 1 group z

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


Problem no 1 group z

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.


Problem no 1 group z

Why choose WOS?

Benefits:

  • Profit

  • Easy to manage

  • Protect the customer base

  • Easy to establish in now china regulations for foreign investment


Conclusion
Conclusion

  • Analysis of management and marketing

  • Experience of a successful company

  • Wholly-owned Subsidiary is preferred for establishing a company in Shanghai


Reference
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


The end

The End

00014049D Ivy Tse

00212768D Aily Lam

00250538D Davis Heung

00253308D Ming Fan

00291790D Kim Wong

00354114D Michelle Hui