General electronics joint venture - Essay Example

I think the case was different. In the early Joint venture is one of the most powerful weapons in Gas arsenal. After that they prefer to enter in a new country with the help of Joint venture with companies. 2. The cause of this situation Is, GET now doesn’t want to set up a plant of Its own because If they do so they will Incur a high cost. On the other hand they don’t want to acquire a well established local company because the acquisition cost of that particular company Is too high.

No I don’t think so. . Lack of local knowledge, economic, entry mode, political and cultural constraints that are the man drawbacks/risks of a Joint venture firm to enter Into new state. If want to merge with the leader company of that particular country than they have chance to the risk because that local company help Get familiar with the culture ,knowledge of the people of that particular country. 4. The benefits of partnering with are to get access to their innovative management skills, excellent management development program.

Partners are able to learn shortcut of doing successful business in the international arena. If they intentionally taking the partners advantage in a bad manner they will lose their brand image as a partner. For that reason other established companies of their own circuit will not team up with GEE, and that will prevent GET to enter into a new country. 5. Gas joint venture agreements generally permit the minority partner a huge power to take major strategic decisions. Apart from being a good partner bring equal power sharing mentality in the disguise of Joint venture.