The China Venture

Reflecting on these points the following checklist helps to find answers to various strategic
questions concerning the China engagement:
Subject Questions
Goals Which goals do we want to achieve with our engagement within China? Do we expect
higher turnover and returns or do we expect primarily a bigger market share and a
physical presence in this huge and fast growing market?
Time horizon What is our time horizon? Do we consider China as a sales market or as a base for
production or even as a base of investment and distribution in the whole of Asia?
Business field,
products and services
Technologies, material
and process
What is suitable for this market respectively which new solutions are needed? Are we
capable (resources, know how) and do we wish to develop new products or innovations
for this market?
Which technologies are appropriate and useful for the sales respectively the production
in China? Where is a need for further adapted technologies and research activities or
innovations?
Market Which markets (product markets, regional markets) and which clients (state, private)
do we want to reach and primarily serve? Is there a fit between customer target groups
and/or regional target groups with our organisational concept? W hat is to do to be
Production-place &
infrastructure
better placed (market) and positioned (marketing) in these markets?
Where are suitable production places and facilities? Can we achieve our investment
goals and can we manage logistical problems? Where do we get funding? Can we rely
on State promotion (tax holidays and other incentives)?
Partners & suppliers Who are our partners and suppliers – state or private organisations within China or
other partners from other states? Do we have to look for new suppliers or do we have
to focus on other supply industries and clients?
Competitors How strong is the position of our competitors? Do we know their strategies and goals?
Where are they active and why? Whom do they work with? Where do we differ from
our com petitors? Where do we have comparative advantages, where are we on a weak
Human resources &
training
Product ion-place &
infrastructure
position?
Do we have the necessary skilled human resources in our company to be active in
China and even expand our activities and engagement? Is there a market for qualified
Swiss/Chinese candidates that we could employ? How should training activities be
organised in order to make us successful? How can we integrate our new enterprise in
China in our training concept and personnel planning system?
Where are suitable production places and facilities? Can we achieve our investment
goals and can we manage logistical problems? Where do we get funding? Can we rely
on State promotion (tax holidays and other incentives)?
Partners & suppliers Who are our partners and suppliers – state or private organisations within China or
other partners from other states? Do we have to look for new suppliers or do we have
to focus on other supply industries and clients?
Competitors How strong is the position of our competitors? Do we know their strategies and goals?
Where are they active and why? Whom do they work with? Where do we differ from
our competitors? Where do we have comparative advantages, where are we on a weak
Human resources &
training
position?
Do we have the necessary skilled human resources in our company to be active in
China and even expand our activities and engagement? Is there a market for qualified
Swiss/Chinese candidates that we could employ? How should training activities be
organised in order to make us successful? How can we integrate our new enterprise in
China in our training concept and personnel planning system?
TABLE 3-4: Strategic questions for SME's planning to invest in China
3.2.7 Risk Analysis
Risks from business engagement in China may be minimised by thorough preparation not
only in the economic but also in the cultural sector as the peculiarities of China significantly
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