Why did gm enter through a joint venture with saic

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Reference no: EM131171165

Provide a scenario where a company would enter a foreign market using the following modes of entry. Be sure to provide one scenario for each mode:

  • Exporting
  • Licensing
  • Franchising
  • Creating a turnkey project
  • Establishing joint ventures
  • Setting up a wholly-owned subsidiary

Give justification for your choices using the advantages or disadvantages for each mode discussed in course readings.

Read the closing case attached and prepare a response to the following questions:

  • GM entered the Chinese market at a time when demand was very limited. Why? What was the strategic rational?
  • Why did GM enter through a joint venture with SAIC? What are the benefits of this approach? What are the potential risks here?
  • Why did GM not simply license its technology to SAIC? Why did it not export cars from the United States?
  • Why has the joint venture been successful to date?

Attachment:- Case.rar

Reference no: EM131171165

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