Wholly Owned Subsidiaries (Global Marketing)

Subsidiary: company whose entire share capital is held by another firm

Global Marketing - Distribution

A Wholly Owned Subsidiaries (WOS) is a company whose entire share capital is held by another company, referred to as the parent or holding company. Although the subsidiary operates as a distinct legal entity, it is fully controlled by the parent company.

Companies choose wholly owned subsidiaries as a mode of Foreign Direct Investment (FDI) or business expansion to achieve specific strategic objectives:

1. Full Control over Operations
2. Market Penetration and Expansion
3. Risk Management and Liability Isolation
4. Protection of Technology and Intellectual Property Rights
5. Tax and Regulatory Optimization

Tesla established a wholly owned subsidiary in China to build and operate Gigafactory Shanghai. This strategic move marked a pivotal step in Tesla’s global expansion, enabling the company to directly access and compete in the world’s largest electric vehicle market.

Unlike many foreign automakers that traditionally entered the Chinese market through joint ventures—due to regulatory restrictions—Tesla chose to establish a wholly owned subsidiary. This decision made Tesla the first foreign automaker to fully own its manufacturing operations in China, reflecting both a shift in Chinese policy and Tesla’s strategic desire for full control over its operations, technology, and Brand.

Religion and global distribution

AI for Global Business

1. AI in International Marketing and Customer Insights
2. AI in Global Strategy and Decision-Making

Academic Programs

1. Importers and Distributors
2. Licensing and Franchising
3. Strategic Alliances

(c) EENI Global Business School (1995-2025)
Top of this page