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China Watch – A foreign lawyer’s view from the inside

Mr Lewis seems to be making the classic mistake - so prevalent in the U.S. and UK - of confusing profit margin with quality and business strength. Aston Martin has a higher profit margin than Toyota, but Toyota is a vastly bigger company with vastly higher total profits, and a vastly higher total worth. To describe it as lower quality would also be absurd - its management is superior. Dacheng and Yinke are aiming to be the Toyota of the legal market, rather than the Aston Martin. The legal market is currently unusual in that many of the largest firms are also those with the highest profit margins. That is going to change radically in the coming years, and China-based firms will lead the change.

9-Mar-2012

5:12 pm