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Shanghai NSE Electric Co. Ltd. and Its International Cooperation
內容大綱
Shanghai NSE Electric Co. Ltd. (NSE), a medium-sized manufacturer of marine switch panels, had entered into a joint venture with Schneider Electric under which NSE was Schneider’s sole technology licensee in China. NSE felt fortunate because the world shipbuilding market was strong and orders were often full. With comprehensive and close cooperation, NSE was confident in Schneider. Nevertheless, Schneider announced that it would issue a second license to NSE’s outsourcing manufacturer, SaierNico Electric & Automation. This meant that a competitor that produced and sold products of the same brand would emerge in the Chinese market. What was worse, this competitor had been cultivated by NSE. The CEO of NSE believed that NSE had three options: (1) continue to cooperate with Schneider; (2) broaden its business and cooperate with other powerful companies; or (3) invest more in local innovation to develop its own brand.
學習目標
In recent years, an increasing number of Chinese enterprises have become involved in international cooperation through primary trade licensing and joint ventures, boosting the growth of Chinese enterprises but also introducing difficulties and challenges. This case describes NSE’s international cooperation process from a primary import agent to an authorized joint venture and then to a wholly owned company that has successfully developed indigenous products. It is suitable for MBA and executive courses in strategic management and international business. It offers students an opportunity to become familiar with the Chinese context and understand the advantages and disadvantages of inward internationalization. Specifically, the case can be used to give students the following opportunities:<ul><li> <br>To understand modes of inward internationalization and the conditions of their application;</li><li>To understand the conditions under which inward internationalization can be realized and the effects of inward internationalization modes from a resource perspective.</li><li>To understand that the comparative advantage or disadvantage in resources determines the position of an enterprise in international cooperation.</ul></li>