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The Design and Management of International Joint Ventures

The Design and Management of International Joint Ventures

GlennWestenberg
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The Design and Management of International Joint Ventures

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  1. The Design and Management of International Joint Ventures

  2. 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

  3. 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

  4. Taking Products to Foreign Markets • Too expensive to export • Reduce foreign entry risk • Following customers to foreign markets • Investing in “Markets of the Future”

  5. Bringing Foreign Products to Local Markets • Foreign partner receives more • Many foreign partners make a profit shipping • Receive technology fee

  6. 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

  7. 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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