Concept explainers
Case summary:
The case deals with the success of Company G in Country C. In 1997, Company G entered to Country C through a joint venture with Company S. Company G introduced additional models in 2007, as they thought that Country C is an important market. Company G believed that their overall success would reflect their decision of building cars as per the need of customers.
Even during the recent recession period, the auto market in Country C was strong. In recent times, Company G sells more cars in Country C when compared to Country U. A recent research predicted that the demand will grow to reach 35 million vehicles per year by 2022.
To determine: The benefits and risks associated with approaching a market through joint venture
Want to see the full answer?
Check out a sample textbook solutionChapter IC Solutions
International Business: Competing in the Global Marketplace
- Why did Burberry initially chose a licensing strategy to expand its presence in Japan? What limitations of the licensing strategy became apparent over time? Should Burberry have expected these drawbacks to arise? Was terminating the Japanese licensing agreement and opening wholly owned stores the correct strategic move for Burberry? What are the risks here? To what extent does internalization theory explain Burberry’s experience in Japan?arrow_forwardTo what do you attribute the success of Southwest Airlines?arrow_forwardDo you think IKEA calculate the business risk properly before penetrating the global market? Why?arrow_forward
- Alliances with ABB and Siemens are the only one alternative contained in the consultants' report. What other alternatives do you think the report might contain?arrow_forwardWhat are the benefits to American medical providers of outsourcing certain well-defined tasks such as interpreting an MRI scan to foreign providers based in countries such as India? What are the costs? On balance, do you think that the kind of outsourcing undertaken by American health care providers is a good thing or a bad thing for the American economy? Explain your reasoning. What are the practical limits to outsourcing health care provision to other countries? Who are the primary beneficiaries of the growth of medical tourism? Who might lose from this trend?arrow_forwardwhy has general motors (the company) succeeded?arrow_forward
- Huawei was included in the “entity list” set up by American government, faced with very strict restrictions now. Please provide some useful and practical suggestions for Huawei if there's any possibility to enter into American market in the future.arrow_forwardHow would a brick-and-mortar company use FBA to integrate its information systems with Amazon's?arrow_forwardWhat capabilities do Samsung’s Silicon Valley outposts provide?arrow_forward
- What is another effective way for a firm to move into the global arena with relatively little risk?arrow_forwardHow would FBA combine a brick-and-mortar retailer's information systems with Amazon's?arrow_forwardKia is a car company from South Korea. They would like to find franchisees to sell their electric car, the Kia Soul EV, in Canada. Why could franchising be a good choice for Kia? What issues could they face with franchises?arrow_forward