The first entry mode that Toyota can apply is joint venture. Joint venture can be defined as a cooperative enterprises entered into by two or more business entities (Murray, 2012). Joint venture differs from strategic alliance as the involved parties come to an agreement to a new joint entity for competitive advantage whereas strategic alliance is a partnership where the involved parties take advantage of each other’s core strengths (Thomson, 2009). Toyota should apply joint ventures strategies to expand the future business to international market as it offers many benefits to the company.
has been submitted to us by a student in order to help you with your studies. This is not example of the work written by our professional essay writer
The advantages include but not limited to the increased access to the market, be it globally or locally. Partners engaged in a joint venture are able to facilitate each other in terms of marketing and selling of products or services to their respective existing customers. On the global scale, joint venture partners may originate from different geographical locations and hence they are able to facilitate each other to penetrate foreign markets that they are not able to serve previously (Terjesen, 2012). Therefore, through joint venture Toyota is able to reach for foreign market such as Europe or India.
Next up is the easier access to technology and resources. Through joint venture, firms can opt for alternative cooperation with each other to obtain the technology or resources they need rather than to obtain venture capital for technological expansion or such. By accessing into the existing technological knowhow and resources of their partners, firms are able to bypass the setbacks needed to obtain the required technology or resources they desire (Fea, Christian, 2009). Hence, Toyota is able to save a lot of resources and time in pursuit for technological advancement through joint venture.
Moreover, in this era of rapidly changing international business environment, joint venture can provides Toyota with the opportunity to exit from its non-core businesses. Toyota can engage in a joint venture that gradually separates a business from the rest of the organization and finally sell it off its partners in the joint venture (Bah & Zhao, n.d.). Toyota can offer its expertise in automobile and electrical technology to its partners in the joint venture in exchange for their expertise in other fields for example motorcycle, which Toyota hasn’t serve yet. If the joint venture proves to be successful, Toyota can either further expand its business or sell the business to its partners.
Joint venture is a proven entry mode, tested by numerous multinational companies from all around the world and is feasible for Toyota to adopt. One example for successful joint venture of automobile manufacturers is the case of Ford and Mazda. Mazda first rented Ford’s manufacturing plant for its expansion program which turned out very well. Ford soon entered an agreement with Mazda to reacquire fifty percent stake in the property. Hence, nowadays the plant now produces both Ford’s and Mazda’s sports vehicles, with technological and expertise sharing between the two (Fea, Christian, 2011)
The first entry mode that Toyota can apply is joint venture. Joint venture can be defined as a cooperative enterprises entered into by two or more business entities (Murray, 2012). Joint venture differs from strategic alliance as the involved parties come to an agreement to a new joint entity for competitive advantage whereas strategic alliance is a partnership where the involved parties take advantage of each other’s core strengths (Thomson, 2009). Toyota should apply joint ventures strategies to expand the future business to international market as it offers many benefits to the company.
has been submitted to us by a student in order to help you with your studies. This is not example of the work written by our professional essay writer
The advantages include but not limited to the increased access to the market, be it globally or locally. Partners engaged in a joint venture are able to facilitate each other in terms of marketing and selling of products or services to their respective existing customers. On the global scale, joint venture partners may originate from different geographical locations and hence they are able to facilitate each other to penetrate foreign markets that they are not able to serve previously (Terjesen, 2012). Therefore, through joint venture Toyota is able to reach for foreign market such as Europe or India.
Next up is the easier access to technology and resources. Through joint venture, firms can opt for alternative cooperation with each other to obtain the technology or resources they need rather than to obtain venture capital for technological expansion or such. By accessing into the existing technological knowhow and resources of their partners, firms are able to bypass the setbacks needed to obtain the required technology or resources they desire (Fea, Christian, 2009). Hence, Toyota is able to save a lot of resources and time in pursuit for technological advancement through joint venture.
Moreover, in this era of rapidly changing international business environment, joint venture can provides Toyota with the opportunity to exit from its non-core businesses. Toyota can engage in a joint venture that gradually separates a business from the rest of the organization and finally sell it off its partners in the joint venture (Bah & Zhao, n.d.). Toyota can offer its expertise in automobile and electrical technology to its partners in the joint venture in exchange for their expertise in other fields for example motorcycle, which Toyota hasn’t serve yet. If the joint venture proves to be successful, Toyota can either further expand its business or sell the business to its partners.
Joint venture is a proven entry mode, tested by numerous multinational companies from all around the world and is feasible for Toyota to adopt. One example for successful joint venture of automobile manufacturers is the case of Ford and Mazda. Mazda first rented Ford’s manufacturing plant for its expansion program which turned out very well. Ford soon entered an agreement with Mazda to reacquire fifty percent stake in the property. Hence, nowadays the plant now produces both Ford’s and Mazda’s sports vehicles, with technological and expertise sharing between the two (Fea, Christian, 2011)
การแปล กรุณารอสักครู่..
