| Gain Market Knowledge via
|
} temporary office set up in China
} consulate and government agencies
} the Internet
} media, friends or third parties
|
| Shortcomings of Traditional Approaches
|
} Longer time cycle ?takes at least weeks or even months to get a good knowledge of China market.
} Higher overall cost ?incurs much more costs in addition to the longer time cycle required, thus increasing the overall costs of decision making process.
} Fragmented information ?traditional approaches cannot ensure collection of all essential and accurate information necessary for analysis in decision making process within weeks or months.
|
| Flow Process for Traditional Approaches
|
 |
|
Time & Cost Required for Making a Decision to Enter into China
:
Time: 6 months!
Cost: US$ 55,000!
|
| Lack of market knowledge causes failures and losses
|
| Some companies failed and suffered losses in China due to lack of market knowledge
|
| A Failure Case
|
} In 1998, a Nasdaq listed company Matewave started to establish offices in Shanghai, Beijing and Guanzhou, and planned to start R&D in Shanghai to focus on designing mobile network optimization software with over 60 employees.
} In 2002, because their GSM systems failed to pass China carriers' testing, Matewave had to close all their offices in China.
} Matewave invested US$2.5 million in their China operations annually, but after four years they did not make any sales.
|
| |
Contact us : longray@longrayconsulting.com |
|
