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]
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