With the continuing growth and evolution of
global markets the increasing popularity of international joint ventures should not be a surprise to anyone. About
three quarters of the joint ventures are international (Vaughn, J).
Sparling and Cook (1999) noted that entering new international markets is beyond the capabilities of many
companies, prompting many to look to other organizations for the additional resources and capabilities needed.
Companies who want to find partners to ultimately increase profits in the global market place need to critically look at
a number of factors that might affect the proposed joint venture prior to committing.
This assignment looks at the international joint venture between the PLG a prominent Singaporean developer and
world renowned CHG f.k.a. ‘West Paces Hotel Group’ of Atlanta, Georgia USA. This IJV formed the ‘West Paces
Hotel Group Asia’ headquartered in Singapore in 2006. It was renamed the CHG after another partnership between
WPHG and a private equity firm, Stoneleigh Capital, in December 2011.
Context under which IJV was formed
distribution channels increase productivity through economies of scales (Cleeve, 1997; Harrigan, 1986).
Secondly, joint ventures are able to increase the partners’ competitive strengths, by enhancing their position within the market. By combining the resources of the partners, the new venture can gain a more powerful position even in new markets, and access new customers rapidly. Owing to powerful parent organizations, joint ventures may have an easier way to defend their position in the…
Evaluate the Merck-Banyu Joint Venture, and discuss licensing and exporting as an option to enter the Japanese Market for Merck. What are the risks about?
Merck had already partly achieved its primary goal of being the first or second in terms of market share in North America and to some extent in Europe, however, by far not in each of the major markets across the world. In Japan it only held the 33rd place in terms of market share. By acquiring Banyu Pharmaceuticals, Merck created the…
new market the first is Exporting, then Licensing, Joint Venture, and last Direct Investment. (Foreign Market, 2016)
Exporting by many leading experts is considering the easiest way of entering a new market. It’s the easiest because the company is exporting the product directly into the market so all they have to do is focus on sells. Exporting is the most well established method of entering into the foreign markets, because there is…
Other varieties of mangos are also available in the market. Fruits are homogeneous goods, so enormous amount of branding and positioning efforts will have to be applied. (Weakness)
Produces are depending highly on suppliers, both in terms of quality and quantity. (Weakness)
Japan is new market for Sein-Talone and vice versa we are new sellers to them too, so low level of awareness must be expected. Gaining customers’ attention is crucial for further…
Although Dow Corning’s restricted scope of business to breast implant research will prove that its “corporate culture” upholds the medical community’s “network of ethical value,” at the same time it also proves that it failed to maintain its “free expression” and “conservatism” within capitalistic markets (Brooks & Dunn, 2015, 1-530; Pfeiffer & Forsberg, 2014, p. Inside front cover -161). In other words, Dow Corning’s restricted business model could be viewed by the public as an…
The benefits of this allow for LogRhythm to potentially grow into markets where it once was had no presence or was unable to tap into. One example of this that could be greatly beneficial to both companies is a joint venture between LogRhythm and Dell. LogRhythm and Dell have a partnership already because they supply the hardware to LogRhythm, but Dell could potentially expand its market and help diversity its portfolio even further, but jumping into the SIEM business, so it could compete with…
If two companies are in the same industry or share a common goal, they sometimes choose to work together by forming a separate company. A joint venture is a separate business created jointly by two or more parties that is separate from their original company. Instead of competing with each other in the same industry, they form a company together to compete with the rest of the market. Joint ventures rely a lot on trust. Both parties share a common goal and work together to complete that…
Canadian Oil Sands Limited, is a publically traded, Canadian company, which earns money through investing in oil sands. It generates money by funding in Syncrude Joint Venture (a company that extracts and manufactures oil from oil sands). COS Ltd. was created in 1978, by PanCanadian Petroleum (currently known as Encana). Presently Canadian Oil Sands is being led by Ryan M. Kubik (the CEO), who also happens to be the director and chair board of Syncrude Joint Venture. Canadian Oil Sands used to…
NGUYEN THANH CONG - ANTHONY
CARREFOUR’S ENTRY DUBAI
12-13. What are the reasons behind Carrefour choosing joint venture as a method of entry?
While gaining access to an emerging market such as the UAE in 1995, Carrefour decided to enter into a joint venture with Majid Al Futtaim after the evaluation of laws and market conditions. One of the major reasons for this kind of agreement was that in order to enjoy exclusive presence in the region and be protected from contract…