The Client’s Challenge
After experiencing incremental sales in the Chinese market by working through a single distributor, a top US biotechnology firm made a strategic decision to expand its presence in China. The company approached The Cohen Group (TCG) to provide strategic and tactical advice and assistance as it attempted to manage the risks and opportunities inherent in the marketplace.
TCG Strategy
Based on the company’s short- and long-term goals as well as ongoing developments in the Chinese market, TCG assisted the company in crafting a comprehensive strategic plan. This plan outlined the steps required to engage relevant industry stakeholders in increasing awareness of the company and innovative applications of its products, supporting Chinese government initiatives in biotechnology development, and identifying potential partners and customers. The overall effort required a clear and consistent corporate message and emphasized the principles of mutual benefit and sustained commitment.
Execution
TCG helped to execute this plan by working with the company to establish relationships and collaborations with key Chinese ministries, agencies, research institutes, universities, and private companies. In addition, TCG assisted the company on highly technical business negotiations with potential partners and strategic dialogue with scientists and policymakers. TCG also provided the company with advice regarding how, when and where to establish its formal presence in China. As the engagement unfolded, TCG participated in the management of various challenges — large and small — that inevitably arise in an ever-changing and dynamic market.
Result
Within one year, this effort resulted in multiple collaborations of varying scope including the signing of a joint venture in the Great Hall of the People with a leading Chinese biotechnology company. As a result of the progress achieved, the customer significantly accelerated its expansion plans in China. In 2006, the company launched a formal office in Shanghai to better service its growing client base and maximize the opportunities in the marketplace.