The China Investor specializes in arranging strategic alliances
The most successful companies are those adept at strategic alliances. Strategic alliances are the fastest, least risky and potentially the most profitable way to go global and gain new skills. A survey of corporate executives indicates that over 80% believe that alliances will be a major factor in their business growth. Within the next five years the value of business alliances is projected to exceed fifty trillion U.S. dollars.
Strategic Alliances are about gaining leverage and sharing risk. When change is so intense that internal resources are not sufficient for success, strategic alliances provide the needed resources to capture new market share, improve time to market, add new skill sets, and to gain entry into new international markets.
The Strategic Alliance Process
Successful strategic alliances begin with an in-depth process in which major elements of the potential alliance are fully analyzed and then implemented. This starts with a comprehensive understanding of the Corporate Vision or Objective; followed by the determination of the strategic targets by market segment; Analysis of the technology / market trends by treats and opportunities; determination of the product/technology/market gaps to be filled; analysis of alternatives for achieving strategic objectives; identifying and evaluating potential strategic alliance partners; negotiating the actual strategic alliance agreement; setting up the strategic alliance management structure; and finishing with strategic alliance goal attainment reporting to the strategic alliance governance board.
Key Factors Influencing the Formation of Strategic Alliances.
Research and studies show that the major factors that companies enter into strategic alliances are:
- Time to market 50%
- Market factors 42%
- Technology 8%
Marketing factors can be further broken as:
- Market entry into established segment 33%
- Market / Product positioning 25%
- Access to distribution channels 25%
- Market entry into new/emerging markets 17%
The China Investor's Experience and Expertise in Arranging
Strategic Alliances in China
Our business successes and experience in Greater China includes numerous equity and co-operative joint ventures, wholly foreign-owned and foreign holding company investment projects across a wide range of industries, including telecommunications, petroleum, agriculture, retail and wholesale distribution, pharmaceuticals, retail and distribution, residential housing, semi-conductor fabrication and design, food products, motor cycle and automobile products, consumer electronics products, industrial goods, software licensing, manufacturing technology license contracts, joint R&D lab arrangements, co-development agreements, and trademark licensing and enforcement, etc. It is important to note that vast majority of these successes have been accomplished for companies, joint ventures and offshore trusts in which Pacific Investors is a stakeholder. The project structures range from green field investments through mergers and acquisitions and include numerous restructurings, divestitures and liquidations of Sino-foreign joint ventures. We have also advised on general services contracts, consulting contracts, employment contracts, management contracting arrangements, distributorship, re-seller agreements, representative agreements, equipment trial agreements, OEM contracts and service sub-contracts and other cross-border trade and investment transactions.
Because of our many decades of Asia and Greater China experience and relationships we have been asked by American, Australian, European and Latin American companies to assist them with the establishment of manufacturing and equity joint ventures, holding companies, wholly foreign owned enterprises, bonded zone companies and representative offices, etc. We have also advised numerous foreign companies and foreign-invested enterprises in connection with the negotiation of infrastructure contracts, distribution contracts, sales contracts, services contracts, technology and trademark license contracts, consulting contracts, employment contracts, trade finance contracts, management contracting arrangements and other cross-boarder and investment transactions. Today, Pacific Investors is actively developing new business opportunities and alliances for American companies with companies and enterprises in Asia Pacific and Greater China. Recently, we have seen an increase in requests in the opposite direct. That is, companies in greater China are increasingly asking us to find and help them form strategic alliances with Western companies. Accordingly, we have dedicated additional human and financial resources to meet these needs.
Our Knowledge Base contains China specific advice and information
compiled from our vast business experience and expertise and from
other renowned China experts about arranging strategic alliances
in China and doing business in China . 
Our Knowledge Base contains China specific advice and information compiled from our vast business experience and expertise and from other renowned China experts about arranging strategic alliances in China and doing business in China .
The Meaning of "GuanXi"
A literal translation of "Guanxi" would be "Relationship". However, throughout the Chinese Overseas Community, in personal life, politics, in business and financial matters, "Guanxi" takes on deeper and more significant meanings. Meanings that include: "connections", "networking", "an asset that can be inherited and transferred from one generation to the next", and "a favor given and an obligation owed". Guanxi also implies the legal sidestepping of traditional regulatory and contractual processes, based on friendships developed over a long period of time.
The Importance of "Guanxi" as a Resource
There are many skillful North American business and financial firms. One resource that Pacific Investors possesses, that sets it above even the biggest of other investment and financial firms, is its Overseas Chinese affiliations and "Guanxi" resources. As a group, the worldwide Overseas Chinese community has one of the deepest pool of liquid capital. This capital flows through the unique system known as "Guanxi".
How We Utilize our "GuanXi"
"GuanXi" is an asset, an IOU, an obligation that can be called upon and collected. Like any other asset it is used as a tool to accomplish specific goals.
Using our "GuanXi" with high-ranking officials and corporate executives is fundamental tool for expediting business in both Asia ¹CPacific and North America.
Through our "GuanXi" networks we are perfectly positioned to make sure that our projects and those of our partners and clients have a much higher record of success.
Our "GuanXi" combined with our strong management experience and financial expertise sets us apart, from even much larger firms.
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