Business Intelligence

A Canadian Technology Company Embarks On Expansion Strategy In China

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Executive Summary

When a large and successful Canadian technology company needed to build its business in the lucrative Chinese market, it found the road to profitability was not a simple one. The company - a leader in its class, needed new growth strategies on the ground. It had already teamed up with a local distribution partner, but the company was lagging behind its competitors. The local distribution partner knew the technology industry, the competition and the laws required to do business in China. However, the distributor was located in Beijing, and the company needed to branch into Hong Kong, Beijing, Shanghai and Guangzhou in the south to stay competitive. At this point, the company turned to Deloitte's Chinese Services Group for advice on how do Chinese business practices differ from those of other countries? What are the cultural and business nuances to consider? And what works and what doesn't? The strategy for the future stands as the company is now focusing on selling its products to smaller state-owned enterprises and mid-sized multinational corporations. At the same time, it is keeping an eye on the changing dynamics of the market. In five years, that strategy is likely to change as the company seeks to do business with the larger state-owned enterprises. The next steps will have Deloitte assisting in the company's intellectual property protection and setting up an appropriate and effective corporate tax structure.

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