Asia Market Entry
Asian markets have continued to grow rapidly, and many companies are interested in entering the market. Over the last ten years, advanced economies grew at an average of 2.5%, whereas developing Asia grew at 7.7% during the same period. According to Professor Robert Salomon, as markets in the advanced economies become saturated, even mid-size companies from the US and the EU are trying to expand into Asian markets. To see text of entire article click here.
In 2007, Amcham Shanghai found that "two thirds of the surveyed American companies in China are operating profitably and 90% saw an increase in revenues in 2007."
However, many companies establishing operations in Asia are faced with two options:
• The high risk, low cost option of entering new markets via distributor relationships.
• The high cost, low risk option of setting up offices in Asia.
Woodward Partners provides a third alternative. We act as an on-the-ground, representative office to help you manage your entry into Asian markets. We help you set up the necessary structures and arrangements to get started, bringing our years of experience in the region to help companies take the risk and the cost out of establishing operations in Asia.
Our approach begins by developing our understanding of our clients' business and objectives with regards to Asia market entry and then tailoring the approach to the individual company's needs. The general steps involved include:
• scoping the opportunity, including understanding the market size, profitable market segments, and competitive landscape,
• identifying the most cost efficient means of entering the market,
• establishing initial operational capabilities (including sales, service, distribution, and human resources),
• marketing, and
• ongoing performance management.
Woodward Partners helps a European pharmaceutical company position themselves to increase market share by representing them in Japan.
After many years of stagnant growth, Woodward Partners acted as on-the-ground representative for a large European pharmaceutical company, helping them re-position themselves in the market to improve speed to market and market share. After an initial period of analysis, Woodward Partners recognized that an ineffective distributor relationship was causing the company to lose market share. Using Woodward Partners consultants, we were able to identify and develop new distributor relationships and establish appropriate methods to evaluate the performance of those relationships, ultimately expanding their market share.
What factors should firms consider before expanding into foreign markets? How can firms benefit most from their experience and from the experiences of other firms? Prof. Rob Solomon of the NYU Stern School of Business and author of Learning from Exporting: New Perspectives, New Insights (2007) explores these questions.How to Integrate "Chindia" into a Cohesive Global Strategy
Prof. Nitin Pangarkar of the NUS Business School and authority on China and India looks at the implications of the emergence of "Chindia," dispels common misconceptions about these fast growing economies, explores opportunities, and outlines five rules of thumb for effectively integrating "Chindia" into a global strategy.