Entrepreneurial firm, PS2, has been presented with two opportunities to significantly expand their business in China. Paul Antle, President and CEO of PS2, has come to you asking for your advice regarding these opportunities. Review the information available to you in the case and write a response to Mr. Antle’s questions:
Should PS2 enter the Chinese market? Which opportunity should PS2 pursue? Could PS2 pursue both opportunities? Should they? Did PS2 possess the required resources and capabilities to pursue an equity-based entry? What ownership levels should PS2 assume for each option?
As you respond to each question, be sure that you explain the major issues that need to be considered. For example, what should be considered when thinking about entering the Chinese market?