Expand into Asia
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Why expand into Asia ?

  • In 2009, total car sales in China overtook those of the US
  • According to Goldman-Sachs, China will overtake the US as world’s largest economy by 2027. This is not considering the possible revaluation of the currency (RMB) which, if it happens, will accelerate the process.
  • Jim O’Neill, the author of this prediction, forecasts China growth in 2010 at 11.9%
  • HSBC has decided to move its CEO from London to Hong Kong
  • Asia has great diversity and vitality
  • India and China have 100 million more middle class per year

Many western firms fail in Asia because conditions are different:

  • The cultural barrier
  • Guanxi which describes the basic dynamic in personalized networks of influence, is a central idea in Chinese society
  • The need for local partners, time factor, rituals, trust and hierarchy 
  • Need to be persistent, patient, observe local customs
  • Need to treat elder people with respect
Never cause anyone to lose face, importance of rituals e.g. how to accept a business card  

 


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