The above mentioned problems are important for the USTech Company and need to be addressed as they have a significant impact on the operations and the future growth of the company in terms of their market share as well as their revenue in the US as well as the South Asian region.
The USTech Company has a number of options that it can pursue in order to decrease its costs for operations. One of them is to work in collaboration with Taisource and manufacture their products in China taking advantage of the low cost of operations and production that the region has to provide. The benefit of this option is that the company will be considerably reducing its operating costs, and becoming competitive in the US. However the disadvantages of this option pertain to the fact that the company will increasingly become independent on the Taisource Company and will have to share extensive knowledge about their product and innovations with it. This is not a good option as the Taisource Company is already thinking if operating independently through China and providing similar products to the South Asian market.
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