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DODO S.r.l.

Pordenone via G. B. Bertossi, 6 - 33170 - Italy
tel. +39 0434 1852041  |  fax +39 0434 1691252

info@dodosrl.it

2021 | Dodo srl | All rights reserved| Reg. Imp. PN- REA PN-81410         Tax Code and VAT No. 01497330934 | Share Capital 90,000.00 Euros paid in full

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Internationalization and establishment of Joint Venture with Hong Kong to rationalize processes and open new markets

Context: Italian companies in the Milan area active for 40 years, mechanical sector linked to components. Turnover > 25 Mln €, of which 60% abroad, number of employees > 80.

 Problem 

  • Strong contraction of the market due to the ever-increasing competition from Asian players. Drop in turnover. Need to create strategic alliances in response to the globalization of markets with a tool to carry out a common project Joint Venture through the union of resources that allows each company to maintain its legal and economic autonomy, where each partner is responsible for the execution of their own part.

  • Need to identify Asian partners where to relocate part of the production
  • Lack of an analysis of the scenario and of fundamental elements such as: 

 Proposed solution 

  • Temporary Management with this work plan.
  • Study and breakdown of the company budget into Sales Budget, Raw Materials Purchase Budget, Personnel Cost Budget, Investment Budget.

  • Identification of the partner with current common interests.

  • Definition of investment risk and degree of responsibility.

  • Definition of economic cooperation and technical-commercial collaboration

  • Complete and exhaustive examination of all legal and regulatory aspects

  • Negotiation and definition of the J.V. contract with all the relationships between the partners: - constitution - division of shares - partners' responsibilities - fields of intervention - supply - research and training - management - production and sales plans - strategies and marketing.

 Timing 

10 months.

 Results achieved 

  • Joint Venture realized.
  • Instability of competition limited.
  • Certain mature, unprofitable processes in Italy rationalized.
  • Synergies created and exploited.
  • Entry into the Asian market (with solid positioning).
  • Products and capacities obtained.
  • Planned investments optimized.

  1. Lack of financial resources.
  2. Growth of international trade for low-margin products.
  3. Maturity of some industrial sectors.
  4. Need to identify where to make technological investments.
  5. Very strong competitive battle.
  6. Interdependence of different national economies.
  7. Situation of vulnerability of individual companies.

DODO S.r.l.

Pordenon via G. B. Bertossi, 6 - 33170 - Italy
tel. +39 0434 1852041 | fax +39 0434 1691252

Vago di Lavagno - VERONA via N. Copernico, 44 - 37030 - Italy
tel. +39 045 4853209 | fax +39 045 5113386

info@dodosrl.it

2019 | Dodo srl | Ducj i dirits risiervâts | Reg. Imp. PN- REA PN-81410         C.F.e P. IVA 01497330934 | Cap. Soc. 90.000,00 Euro i.v.

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