1. By the 1970s and 1980s the growth of the Diebold was driven by the rapid expectance of ATM in the USA. The company initiated to sell ATM machines in foreign markets in the 1980s. Diebold forged a distribution agreement with the large Dutch multinational company Philips NV . Under the agreement, Diebold manufactured ATMs in the United States and exported them to foreign customers after Philips had made the sale. Therefore , the company select the entry mode of exporting which is usually the first step for a firm which intend expanded internationally .
2. Diebold established a joint venture with IBM rather than setting up its own international because the company felt that it lacked the resources to establish an international presence. Diebold’s switch from Philips to IBM as a distribution partner was driven by a belief that IBM would pursue ATM sales more aggressively.
3. Diebold purchased IBM’s 30% stake in the Interbold joint venture. The acquisition was by the Diebold’s dissatisfaction with the IBM’s sales efforts , which often fell short of quota . Responsible for this problem was the IBM sales force. Diebold’s ATMs were just part of their product portfolio and not necessarily their top priority. Diebold felt that it could attain a greater market share if it gained direct control over distribution. . Furthermore , the company believed that during the previous 15 years it had accumulated enough international business expertise to warrant going it alone.
4. Diebold’s managers decided that they would need a local manufacturing presence in a number of regions because local differences in the way ATMs are used required local customization of the product .As an example in Asia , many customers pay their utility bill with cash via ATMs . In order to attract customers Diebold had to design ATMs that both account and stacks of up to 100 currency notes and weed out counterfeits. By locating manufacturing close to key markets would help to facilitate local... [continues]
2. Diebold established a joint venture with IBM rather than setting up its own international because the company felt that it lacked the resources to establish an international presence. Diebold’s switch from Philips to IBM as a distribution partner was driven by a belief that IBM would pursue ATM sales more aggressively.
3. Diebold purchased IBM’s 30% stake in the Interbold joint venture. The acquisition was by the Diebold’s dissatisfaction with the IBM’s sales efforts , which often fell short of quota . Responsible for this problem was the IBM sales force. Diebold’s ATMs were just part of their product portfolio and not necessarily their top priority. Diebold felt that it could attain a greater market share if it gained direct control over distribution. . Furthermore , the company believed that during the previous 15 years it had accumulated enough international business expertise to warrant going it alone.
4. Diebold’s managers decided that they would need a local manufacturing presence in a number of regions because local differences in the way ATMs are used required local customization of the product .As an example in Asia , many customers pay their utility bill with cash via ATMs . In order to attract customers Diebold had to design ATMs that both account and stacks of up to 100 currency notes and weed out counterfeits. By locating manufacturing close to key markets would help to facilitate local... [continues]
Cite This Essay
- APA
-
(2011, 10). Diebold’s International Expansion. StudyMode.com. Retrieved 10, 2011, from http://www.studymode.com/essays/Diebold-s-International-Expansion-813277.html
- MLA
-
"Diebold’s International Expansion" StudyMode.com. 10 2011. 10 2011 <http://www.studymode.com/essays/Diebold-s-International-Expansion-813277.html>.
- CHICAGO
-
"Diebold’s International Expansion." StudyMode.com. 10, 2011. Accessed 10, 2011. http://www.studymode.com/essays/Diebold-s-International-Expansion-813277.html.
