The design and management of international joint ventures
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The Design and Management of International Joint Ventures

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The Design and Management of International Joint Ventures

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The Design and Management of International Joint Ventures


Why Create International Joint Venture

  • Four Purposes

    • Strengthen the firm’s existing business

    • Take products into new markets

    • Obtain new products

    • Diversity into new business


Strengthening Existing Business

  • Acquire new technology

  • Know-how

  • Reduce financial risk of major products

  • Eliminate competitor

  • Achieving Economies of Scale

  • Raw Material and Component Supply

  • Research and development


Taking Products to Foreign Markets

  • Too expensive to export

  • Reduce foreign entry risk

  • Following customers to foreign markets

  • Investing in “Markets of the Future”


Bringing Foreign Products to Local Markets

  • Foreign partner receives more

  • Many foreign partners make a profit shipping

  • Receive technology fee


Fuji and Xerox

  • American-Japanese joint venture in Japan

  • For 10 years no changes made to printers

  • 1975 redesigned for Japanese market

  • 1980 Won Deming Award


Joint Venture Checklist

  • Test the Strategic Logic

    • Do you really need a partner?

  • Partnership and Fit

    • Share your objective

  • Shape and Design

    • Define the venture scope

  • Doing the Deal

    • Trust versus legal considerations

  • Making the Venture Work

    • Be flexible


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