Entry into China - Business Plan

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Table of Contents

1. Executive Summary        
2. Overview Industry and Organization        
3. Market Analysis        
4. Strategic Approach: Mode of Entry        
5. International Business Strategy (Integration vs Responsiveness)        
6. Role of Subsidiary in China        
7. Conclusion        

Executive Summary

China has a rich history of being the oldest continuous civilization. From 1976 to 2006 China was able to improve its per capita income seven fold, improving the lives of almost 200 million people. Ranking 30th in World Economic Forum’s Global Competitive Index, in 2009, China showcased a gdp growth of 7.9% during the same time.  

ABC company, a leading technology organization focused on Banking and Finance applications, are looking to expand their operations to China. Given their international track record among other developed as well as developing nations, they felt that China was a good target for further expansion.

However, to do the same, they need to understand and evaluate their options considering an entry into a relatively new market. Their advantage being that their HQ in in India and had close proximity to their strategic leadership.

This paper will further explore and analyze China’s market and understand what are the strategic advantages as well as current market environment considering China’s current socio-economic outlook. For the same we shall use strategy frameworks such as CAGE, IR to understand the most efficient method to approach the Chinese Market.

Overview Industry and Organization

Revenue management cycle is a critical function for any business. In case of services companies such  telecom operators, banks etc. there is no business possible without a revenue management function. Revenue management function basically monetizes the services that these companies provides. That is, these companies need to have process and systems in place which allow them compute and collect charges for the services they provide (e.g. telephone bill).

Revenue management function in its narrow form is also known as pricing and billing function. Traditionally every service provider developed its own adhoc IT systems to implement its pricing and billing needs. However over the period of time, specialist companies have evolved which have developed products designed specifically to meet pricing and billing needs of various service industries. The service providers have realised that if they can leverage on the advanced capabilities that these specialists provide, they can focus on their core operations and use off the shelf IT products for their pricing and billing needs.