The ACC-HSG Business Development Model for Asia

We have developed the ACC-HSG Business Development Model for Asia based on expert-based research studies with Asian and European managers. It highlights the key concepts and necessary steps resulting in a successful market entry project in Asia.

First of all, European senior executives and entrepreneurs need to be aware that a market entry into any Asian country requires substantial resources in the form of money, time and passion (representing the most inner part of the ‘bowl’). Research studies of the ASIA CONNECT Center-HSG have confirmed that without the dedication and strong belief of the leadership team into the opportunities of an Asian market, the market entry process is jeopardized from the very beginning. Based on the resources commitment and frequent visits to the potential market in Asia (visit to fairs, spending holidays, visiting Swiss and local institutions etc.), senior executives are able to develop a first network to potential business partners as well as other important decision makers and industry experts. However, ACC-HSG research has also confirmed that a network (in other words: contacts) is only valuable if you can trust your contacts and they trust you. In a nutshell and slightly simplified, trust in Asia only exists if your local business partners feel that you are vulnerable but also if you can harm them too – trust in Asia is what we call “mutual vulnerability”.

It is then only this mutual vulnerability resp. trust that allows you to access not only your network but especially the network of your network. In order to sufficiently understand an Asian market like India, China or Thailand, it is important to access a wider network of industry managers, administration clerks, academics etc. Only with this access to a wider network in their respective industry, senior executives are able to create the necessary insights in the current as well as future challenges and opportunities in their industry in an Asian market and adapt their business model accordingly. As a result, a successful market entry process can be implemented much more easily.

Based on the ACC-HSG Business Development Model in Asia, the operating logic of the ASIA CONNECT Center-HSG is to be part of an international network of leading business schools and universities in Europe and Asia which act as bridge heads for Asian and European companies respectively to connect themselves to local business partners and other decision makers on a frequent and long-term oriented basis.

Recent studies confirm that Asian companies expanding into Europe face similar challenges.