Keeping in mind the problems that are faced by the company in USTech, it is recommended that the company should continue operating with Taisource and expand the operations to the region of China. For this strategy however the company will need to work closely in association with Taisource instead of simply as a outsourcing partner.
The close association with Taiwan and the expansion of operations to China will provide the company with advantages pertaining to attaining cost related benefits from lower costs of production, and skilled labor as well as gather knowledge about the market form Taisource. The company can work with the Taisource Company for 2-3 years to gather information about the market and establishing links to combat the bureaucratic forces in the Chinese government. After the period of 3 years the company can start its operations independently. The advantage of this option would be that the company would have the support of information and knowledge gathered by partnering with Taisource in the region which would better enable it to take advantage of operating independently in the region of China.
The negative effects that can come about as a result of this option pertain to the product innovation sharing that would need to be present in order to work in collaboration with Taisource, which the Taiwanese company can use to its advantage in the future. However this option is still more feasible and can be sued as a pilot test project to test the waters pertaining ton operating in the Chinese region. This can allow for the gathering more information and enabling the company to assess the market and the competition posed by Taisource and other similar companies on the region.
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