日本九光医药咨询项目-entrystrategy-全英文(ppt67)-医药保健(编辑修改稿)

日本九光医药咨询项目-entrystrategy-全英文(ppt67)-医药保健(编辑修改稿)内容摘要：

ate for their mutual benefit, which involves two firms cooperating rather than one firm acting alone or hiring another firm. A joint venture: • Special type of SA where two or more firms join together to create a new business entity that is legally separate and distinct from its parent firms. A JV is normally incorporated. The percent of ownership of each parent is negotiated between the two firms.  Joint Ventures involve two or more anizations that share the ownership ,management, risks, and rewards of the newly formed entity. Each partner contributes equity that may take the form of money, plant and equipment, and/or technology. For example: Matsushita established a joint venture with Philips in Belgium to produce batteries Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 21 Advantages of JV as Mode of Entry Advantages of JV as Mode of Entry Ease of market entry Shared risk Shared knowledge and expertise Synergy and petitive advantage Other advantages Reduce costs of entry with foreign partners (financial costs, government regulatory barriers requiring foreign partner firm, lack of knowledge about local market, entrenched large petitor already in market). “Time to market” may also be reduced. Risk of entering a new market: reduces total financial investment and therefore potential financial loss。 may be able to coopt a potential rival and therefore reduce the risk of petition. Shared risks of new product development (risk that investment may fail). Firm may be able to gain knowledge and expertise that is lacking by a SA with a partner firm (. NUMMI). Access to plementary technology. EOS and scope gains. Firms can learn more about the Chinese business environment, leading to greater success in the long term. Firms may lack distribution work or other specialized assets necessary to be successful in foreign market, and through bining with another firm, able to achieve gains could not otherwise have achieved.  Provides more control over foreign operations  Offers better protection for the firm’s FSAs  Better understanding of host market, easier and quicker to adapt products for market and respond to market changes. Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 22 Disadvantages of JV as Mode of Entry Disadvantages of JV as Mode of Entry high cost route problems of managing distribution of earnings potential loss of autonomy Difficulties in getting access to information from partner, fear of opportunistic behavior by partner, and suspicion and loss of trust in partner. problems of managing the subsidiary at a distance, and inpatibilities in management philosophies and practices Have to split profits from SA。 problems with accounting procedures。 transfer pricing issues。 what to do when SA runs at a loss Partner firms share risks and profits, but also share control and limit their own activities and choices. Also, SA may be first step to takeover by one partner. difficulties access to information High cost route (financial amp。 personnel mitment) and economic amp。 political risks more exposure to economic and political risks Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 23 There are three management issues about JV as follows Three management issues about JV selection of partners form of ownership joint management considerations Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 24 Selection of partners: The selection of an appropriate Chinese partner is a critical factor in establishing a joint venture. Standard of Selection of partners patibility nature of partner’s activities relative safeness of alliance learning potential Trust, similar philosophies and management styles Are activities of partner plementary or petitive? What are partner’s strengths and weaknesses? What does partner bring to the table? Does the deal make good business sense to both sides? What is partner’s track record on past ? What is potential for failure of this SA? Who learns what from whom, at what value, and what cost/price? Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 25 There are 3 main questions about form of ownership about JV Three management issues about JV selection of partners form of ownership joint management considerations. joint venture or looser arrangement? incorporate or not? publicprivate JV? Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 26 There are 3 main Joint Management Considerations about JV Three management issues about JV selection of partners form of ownership joint management considerations. assigned management delegated management shared management One partner assumes primary responsibility for running the JV operation. The parent firms are not involved in daytoday running of the operation。 management control is delegated to JV managers . Both partner firms are full and active partners in managing the JV. Hisamitsu China Market Entry Strategy September 19, 2020 Confidential, Copyright@2020 by Sinotrust 27 Reasons of JV as mode of entry Reasons of JV as mode of entry Government policies and preferences International experience and strategy potential technologies losses to the firm are lower 1,Government policies and preferences are important factors。