While collaboration is known to provide a quick avenue into the Asian markets, it comes with the complexities of managing a partnership.
Acquisitions, on the other hand, are a way to avoid dealing with a partner. This is possible in contexts where acquisitions are permitted and when acquisition targets are available.
Collaboration provides benefits - increased market power, access to new markets and opportunities, lowered costs, sharing risks, boosting innovation and technological developments, facilitating growth and overcoming trade barriers, to name a few - and acquisition presents similar advantages.
So what are the advantages of acquisitions, beyond not having to negotiate with a partner? While many forms of collaboration do not allow control over the local market operation, acquisitions allow full or majority control, if you own the majority of the target organisation. This control can be crucial when operating in Asian markets. Usually, acquisitions conducted in Asian markets are majority-owned as opposed to full ownership, such as wholly owned subsidiaries, as local knowledge is still important and required.