Strategic Alliance Services
The Strategic Alliance Service operates alongside our International Trade Development services, providing specific support to companies in key strategic areas.
Licensing
Licensing, where a company provides technology for a fee or royalty, is a relatively low cost method of international co-operation. Emerging economies are also increasingly interested in technology transfer to jump any product generation gap between products available locally and those from more developed markets.
Assistance can include assessment of the suitability of products for licensing, legal agreements (particularly restrictions on the partner on unauthorised use of the technology) and an implementation plan.
Joint Ventures
Joint Ventures are an expanding area of strategic alliance in international business. The main advantages are a reduction in inter-company contracting/transaction costs, economies of scale in administration, market access, reduced commercial risk and improved ability to react to technological or market change. In some areas, due to local legislation, a joint venture may be the only practical method of entering a potentially attractive market.
Assistance includes use of a checklist and mentoring on the practicalities of planning, implementing, and successful operation of overseas joint ventures.
Foreign Direct Investment
Establishing a subsidiary company is becoming more prevalent for UK companies and is regarded as an effective method of penetrating and establishing control of operations in overseas markets and of generating income through transfer pricing and dividends.
Merger of two companies or outright acquisition of an overseas competitor, with an established product reputation, assets and production/sales network can be an attractive option for companies. In markets where majority foreign ownership is not allowed, a minority shareholding may be considered.
The service covers advice and mentoring with planning, implementing and post-establishment/acquisition operation of the investment, signposting/links to indigenous government inward investment and legislative authorities, investment protection and divestment strategies.
For further information, please contact the International Trade Development Team.