Notably this alliance can only be a success if the

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Notably, this alliance can only be a success if the management gets to select the right partners
CHINA JEWELRY PRODUCTION RESEARCH PROJECT 10and share the vision and mission of the company as well as other relevant information that canimprove the relationship between the parties.The company also has ambitions of using full equity ownership once the business hassettled and established itself in the Chinese market. The first few years of operations are likelyto be turbulent as the company gets to know the market and the different ways it can maximizeprofits and revenues while at the same time minimizing the cost of production. Full equityownership is characterized by mergers and acquisition as well as private ventures[ CITATIONNau12 \l 1033 ]. One way of gaining control of this growing market is to have economies ofscale which can be achieved through merging and buying out other small players in the market.Some of the notable companies that the company may buy to increase its competitive advantageand operations in the region include the 3D-Gold jewelry; the AJ jewelry company limited orAsia Commercial Holdings Limited. The creation and maintenance of strategic alliance in theregion will facilitate the improvement of product introduction as well as overcome trade barriersin the area by having industry players who know what the people want and the legal obstaclesthat might affect the expansion plans of the company[ CITATION Hwa16 \l 1033 ].Legal status of businessThe Chinese market has been described as one of the fastest growing economies in the worldtoday, but has a different and unique cultural background that makes it challenging for foreigninvestors. Besides, the initial cost of operations, as well as the trade barriers, put in place by theChinese government, the company will seek the input of the local companies that already haveestablished operations and market in the state. Therefore, a joint venture with Giorgio Jewelersan established imitation jewel wholesaler and this will enable the new enterprise to take
CHINA JEWELRY PRODUCTION RESEARCH PROJECT 11advantage of the production facilities and created distribution channels. Also, it will make it easyfor the startup to penetrate the market by associating with a renowned brand familiar withcustomers[ CITATION Lia12 \l 1033 ]. A joint venture is a business arrangement where two ormore businesses and individual enter into a contract pool their resources together in an effort ofcompleting a specific task. This form of business arrangement is characterized by the sharing ofresponsibilities between the two parties based on their strengths and weaknesses. Each of thesetwo institutions will be responsible for the profits, losses, and costs connected with the business,which means that each party needs to perform its duties and responsibilities efficiently andeffectively to avoid additional costs that may lead to losses. Some of the advantages that the

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