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Hisense's Internationalization Dilemma: Co-Operation with Loewe
內容大綱
Hisense Co., Ltd. (Hisense) was the fourth-largest television maker in the world, but its market share and brand recognition remained low in Europe. Therefore, strengthening its branding and improving its sales there were priorities for the Chinese company. In 2013, Hisense was considering whether to establish a strategic alliance with the German high-end television manufacturer Loewe AG (Loewe). Despite having a good reputation, Loewe was suffering severe financial distress and facing possible bankruptcy. If Hisense co-operated with Loewe, it would gain access to Loewe’s distribution network in Europe and utilize co-brand advertising with Loewe. In turn, Loewe would benefit from Hisense’s long-term technical support and gain access to the promising Asian market. Should they proceed?
學習目標
This case can be used in undergraduate or MBA courses in international business, strategic management, and international marketing. The case allows students to discuss the critical issues of a strategic alliance. After completion of this case, students will be able to<ul><li>identify the alliance parties’ motives, as well as strategic and operational considerations regarding potential co-operation;</li><li>analyze the parties’ different resource strengths and weaknesses;</li><li>discuss the possible benefits and risks for each alliance party of adopting a product extension strategy; and</li><li>evaluate Hisense’s potential strategic and operational challenges, if it proceeds with this decision.</li><ul>