services companies, the new great frontier is China. Obviously the question at the forefront of everyone’s mind is how to expand into this region without having your proprietary technology pirated by this region’s upstart competitors. The reality is there is no safe way. I’m sure that’s not what the reader wants to hear but the reality is whenever you are bringing a technology concept to a newly industrialized territory you’ll run into corruption, the way to enter this market is to set up safeguards and strategies to protect the integrity of the technology and any other proprietary concepts.
For those looking to have their products manufactured in China this can save a fortune if it’s done properly. You should look at the construction of your product in this area as if you were dealing with a DOD project. Have different aspects of your devise manufactured at different locations without issuing information about the identity of the end product. This seems to work extremely well.
Next, how does a company bring their service or product into a vast market in an expedient and thorough manner? Our firm consults with global operations for IPOs, turn-around strategies and now more than ever globalization strategies facilitation. A few things that we found to work are the necessity for local party system (government) support so that we can audit the appropriate strategic alliances on behalf of our client.
The financial bookkeeping is, well, nonexistent in this region so forensic accounting and having an insider on the government level to share the tax history of whatever company you are looking to partner up with for distribution purposes is a mandatory prerequisite.
Be ready for the ’shake down’ as every high ranking government official and business broker and ‘handler’ is expecting some type of ‘compensation’ for their efforts and it’s merely impossible to make anything happen without understanding this reality.
When you are expanding your business model into the region of China it’s best to start in an urban setting and then gain support from the surrounding areas for example the industrial region of Shanghai. Start at the city center and gradually work your way to the outskirts of the city suburbs. Once you’ve build momentum, city officials from other major cities will begin to lobby your efforts.
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