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  • Sectors: Driving

Case Studies

Joint Venture Strategy in Auto Components

Client is a leader in vehicle safety systems and lighting, heavily oriented in North America and Europe but expanding into Asia Pacific.

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Issue

The client was approached by Chinese lighting supplier seeking a partnership arrangement and technology transfer. Management needed to step back and understand China market opportunity and the relative attractiveness of the Chinese partner.


Approach

Solidiance conducted an initial assessment of China domestic and export market opportunity which also determined scope and nature of client penetration potential. Our team conducted a deep probe on Chinese proposed partner to determine its strengths and weaknesses in China’s export market.


Solution

Our team facilitated venture discussions between our client and the Chinese partner, explored other potential partnerships, as suggested strategy for an organic approach to China entry.


Engagement ROI

Our team recommended against the joint venture and proposed alternative organic entry through setting up its own WOFE operation. Our team assisted the client through the entire process of setting up its manufacturing company from site selection, establishing a local legal entity, to operational layout and organization.