Nora-Sakari Case

Topics: Negotiation, Contract, Win-win game Pages: 3 (868 words) Published: June 10, 2012
Tatevik Ghapantsyan
Nora-Sakari: A proposed JV in Malaysia

Nora-Sakari: A proposed JV in Malaysia
1. Why have the negotiations so far failed to result in an agreement? Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives?

The JV between Nora and Sakari was offered by Nora, Malaysian company which had already got the government order for providing 800,000 telephone lines during the 5 years. Company’s only opportunity to serve this order was JV with experienced company that possessed appropriate technologies for producing necessary equipment. They considered several opportunities but the best choice appeared to be Sakari, Finnish manufacturer of digital telecommunication switches. The advantages of Sakari were opportunity to make customized products and the fact that their switches were much more flexible due to an open architecture.

In case of success this joint venture could become very efficient way for both companies reaching their objective. NORA:
* Expanding market share in the own market by introducing new technology, * Learning from Sakari and later on adopting that technology, * Having capability to fulfill large orders, like government order.

* Chance to establish presence in south east region, which is a market with huge unexploited potential, * International diversification (taking existing product to new market), which will not require large investment, * Main expenses connected with the production are covered by Nora.

But Sakari has several concerns, which include using their technology by Nora in future and becoming their competitor and they wanted to get the order from UK, which was in process at that time. These two projects would be mutually exclusive because of small capabilities of the company. So they had to decide which strategy to adopt and many internal...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Nora Sakari Case Analysis Essay
  • Essay on Nora Sakari Case Analysis
  • Case Study: Nora and Sakari Essay
  • Nora Sakari Essay
  • Essay on Nora Sakari
  • Nora-Sakari Case Analysis Essay
  • Nora-Sakari Case Analysis Essay
  • Nora-Sakari Memo Essay

Become a StudyMode Member

Sign Up - It's Free