Question

Question 1: why do you think that india was an attractive market for jcb? question 2: historically, jcb entered foreign markets through exports. why do you think jcb generally favored exports? question 3: in india, jcb decided to enter via a joint venture. what was the articulated rational for this? in what other ways might the joint venture strategy have benefitted jcb? question 4: what were the risks associated with the joint venture strategy? how did jcb deal with these risks? question 5: what are the benefits to jcb of localizing significant production in india? what are the disadvantages? do the benefits outweigh the disadvantages?

Answer 1

1. India was a striking market for JCB because of the possible it had for development within their exact construction position. When JCB arrived the Indian market in 1979, the business felt the market was prepared for increasing and that the, fear of lost, in the market was too big to disregard. By incoming India’s market quick, JCB prearranged to found a grip in the market and grow an advantage over opponents.
2. I believe JCB preferred exports because of their firm size and market they are a portion of. As manufacturing firm, it would be in their best attention to start global growth as exporters and in time change to another mode for helping a foreign market. By establishing a grip exporting to foreign markets the main advantage that has is the fact that a firm improvements knowledge in manufacturing their product in companies head quarter’s plant and distributing it to numerous national markets. 
3. JCB arrived the Indian market in 1979 in a joint project with Escorts. Their choice to start a joint venture plan was brought on by the high price barriers that made JCB’s original plan of disseminating its product to distant countries. Given that JCB was mainly an exporter and had little knowledge working in foreign sites, their joint venture contract presented the company a means of helping the Indian market without the danger involved in introduction a solely owned job.

4. Out of the numerous risk risks related with joint venture the one that JCB distributed with right was the fact that one companion had a greater stake in the undertaking than the other. The indication is toward hold the common ownership in the venture; the partner who has a bigger portion of the contract has the skill to use superior control over its technology. JCB was not relaxed in telling their mysteries to achievement in a partnership that they did not have govern over, because of the lack of popular stake. JCB decided to increase control again by captivating advantage of variations within government rules and reinstated control by buying 20 percent of Escorts post in the venture. A few years later JCB would go on to acquisition Escorts outstanding stake, subsequent in the joint venture becoming a packed subsidiary.
5. While the joint venture between JCB and Escorts was positive, JCB selected to buy out its partner. JCB took gain of new government rules to originally buy a majority position in the undertaking in 1999, and far along in 2002, buy it complete. Most will perhaps decide that the main advantage of attaining full control of the undertaking was that JCB could now handover its foremost edge knowledges to the venture without dreading that it could be making a future rival. Also, since JCB had full control over the undertaking, it could stay its expansion in India. Some may be curious though whether the business has occupied on too much danger in the Indian market.