General Electric’s joint venture
Case study answers
1. I think the case was different. In the early 2000s joint venture is one of the most powerful weapons in GE s 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, GE now doesn’t want to set up a plant of its own because ...view middle of the document...
No I don’t think so.
3. Lack of local knowledge, economic, entry mode, political and cultural constraints that are the main drawbacks/risks of a joint venture firm to enter into new state. If GE want to merge with the leader company of that particular country than they have chance to minimize the risk because that local company help GE to familiar with the culture ,knowledge of the people of that particular country.
4. The benefits of partnering with GE 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 GE, and that will prevent GE to enter into a new country.
5. Ge s joint venture agreements generally permit the minority partner a huge power to take major strategic decisions. Apart from being a good partner GE bring equal power sharing mentality in the disguise of joint venture.