Developing a solid central air-conditioner market

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Reference no: EM133292270

Assignment:

This case provides a basis for discussing the conflicts and concessions between partners with regard to a JV's overseas sales, the dynamic relationship between a JV and its parent companies, export strategies across regions, and the associated managerial challenges. In June 2014, Hisense of China and Hitachi of Japan were considering whether their 11-year-old joint venture (JV) should once again assume responsibility for its international sales. After developing a solid central air-conditioner market share in China, in 2009, the JV began to sell in various overseas regions but struggled.

In April 2012, the partners agreed to have a Hisense subsidiary (the HIMC) assume full responsibility for selling the JV's products overseas. However, over the next two years, HIMC's performance in selling the JV's products overseas was unsatisfactory. In response, the partners began to discuss whether they should have the JV sell its own products again overseas. Of immediate interest was the Southeast Asian market.

What is the underlying problem or problems?
What factors are causing the problem or problems?
Why did Hisense propose that the joint venture explore overseas markets? Why did Hitachi strongly oppose it? Were there any incongruities between Hisense and Hitachi in positioning the JV? How did the JV's corporate governance influence the two partners' export negotiations?
What motivated Hitachi to eventually make some concessions during the five-year negotiation? Why did Hitachi first remove the African market-entry restrictions in 2009?
When the JV chose different markets to enter and specific market-entry modes in Africa, Eastern Europe, and the Middle East, what factors did it mainly consider?
While there had been strong sales and a large market share attained in the Chinese market, had the JV's overseas exploration been worthwhile?
Should the JV be given the responsibility to explore the Southeast Asian market again? Are there any other viable alternatives?
Identify and describe 5 managerial lessons to be learned from the case.

Reference no: EM133292270

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