Question

1. Vica Juices Limited is considering international expansion into China. In China, the names of products have significant meanings and can be strong drivers of companies’ success. Identify the most appropriate international strategy that Vica Juices Limited can use to penetrate the Chinese market and discuss three potential risks associated with this strategy. THE SOLUTION MUST BE WELL EXPLAIN

Answer 1

In the event that an organization can establish that there is a huge developing business sector for its products and is happy to work to set up a joint venture, at that point a joint venture is most likely the best long haul system to infiltrate the Chinese commercial center. Joint venture in China that can profit both the outside substance and the Chinese party help propel the two players to have a drawn out methodology. As recently talked about, joint venture will permit the remote firm to keep away from tax and amount issues, to acquire center and control of item circulation and administration in China and thus most likely guarantee entrance of a bigger portion of the Chinese commercial center.

By truly being in China, outside firms can without much of a stretch see the genuine needs of end-clients, and costs should be progressively serious because of nearby assembling. Such favorable circumstances may supersede the complexities of setting up joint endeavors, the time it takes to set up a joint venture and the related risks included.

Three potential dangers related with this procedure are:-

• Cost and complexity of documentation required for foundation of JV
• Irreconcilable situations between partners
• Innovation/licensed innovation vulnerability