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SMEs and the need to enter a foreign market.

By Jesus David Cano Romano
July 4, 2017
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CHINA 2 WEST SERVICES CASE STUDIES

Nowadays, more and more companies are looking for the suitable strategy in order to grow their business by international expansion.

Companies that are seeking to operate in a specific country, should consider not only the legal requirements, but also the political, economical, socio-cultural, technological factors.

Furthermore, the environment of the company and the environment of the foreign country, ought to be analyzed in order to be successful.

Negligence to act in accordance with regulations might lead to negative outcomes, such as goods being subject to severe tariff payments, or goods being seized by customs authorities.

It is in this scenario that China 2 West Services(C2WS), a British owned company, deliver supply solution for manufacturing companies competing in the market. Since the 2005, the company has reached high and positive standards not only helping business to find the trusted supplier, but also tending to establish a solid and reliable buying and delivery process within the companies involved.

Looking at the Chinese contest, the low cost of labour and the vast quantity of resources available has encouraged foreign companies to invest in the country  and more specifically to supply manufacturing in the Chinese environment.

Moreover, since the mid 1990s it has been monitored an high tendency for many foreign companies to invest in China, establishing particular type of foreign direct investment (FDI), the wholly- owned foreign subsidiaries.

This specific type of entry mode is used by business that intend to start a company in a foreign country, building it from the beginning and it is generally used when politico-economic condition are highly favorable, as it is expensive and it can take time to organize. The new company will require to hire local employees and to adjust’s to the country’s regulation.

In this regard, it is crucial to outline that C2WS has entry the Chinese market establishing in 2008 a wholly foreign owned enterprise in China with import, export and manufacturing license.

To conclude, adopting the most appropriate strategy to enter the Chinese market, can partially incise on the business success. In this case, what really matter is delivering a complete supply solution for Chinese manufactured products in order to be suitable for Western market and is in this background, that C2WS has shown propitious results.