the design and management of international joint ventures
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Presentation Transcript
why create international joint venture
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
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
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
Bringing Foreign Products to Local Markets
  • Foreign partner receives more
  • Many foreign partners make a profit shipping
  • Receive technology fee
fuji and xerox
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
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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