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The design and management of international joint ventures


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The design and management of international joint ventures

  1. 1. The Design and Management of International Joint Ventures<br />
  2. 2. Why Create International Joint Venture<br />Four Purposes<br />Strengthen the firm’s existing business<br />Take products into new markets<br />Obtain new products<br />Diversity into new business<br />
  3. 3. Strengthening Existing Business<br />Acquire new technology<br />Know-how<br />Reduce financial risk of major products<br />Eliminate competitor<br />Achieving Economies of Scale <br />Raw Material and Component Supply<br />Research and development<br />
  4. 4. Taking Products to Foreign Markets<br />Too expensive to export<br />Reduce foreign entry risk<br />Following customers to foreign markets<br />Investing in “Markets of the Future”<br />
  5. 5. Bringing Foreign Products to Local Markets<br />Foreign partner receives more<br />Many foreign partners make a profit shipping<br />Receive technology fee<br />
  6. 6. Fuji and Xerox<br />American-Japanese joint venture in Japan<br />For 10 years no changes made to printers<br />1975 redesigned for Japanese market<br />1980 Won Deming Award<br />
  7. 7. Joint Venture Checklist<br />Test the Strategic Logic<br />Do you really need a partner?<br />Partnership and Fit<br />Share your objective<br />Shape and Design<br />Define the venture scope<br />Doing the Deal<br />Trust versus legal considerations<br />Making the Venture Work<br />Be flexible<br />