The Mutual Strategic Development for International Organizations: Collaborative Ventures
0.0 The Mutual Strategic Development for International Organizations: Collaborative Ventures
0.1 Examination of the Sony Ericsson Joint Venture as an International Collaborative Venture and evaluating the rationales and motives from each partner’s perspective.
0.2 For: CEM Assignments Office
Date: 16/10/2013
0.3 From: Deniz Berkan Unsal
Moscow, Russian Federation
1.0 Summary
The competitive nature of today’s international business world pushes the companies to find a common ground between each other. Even market giants have considerable tendency in creating collaborative arrangements with their competitors in order to keep their positions in the market.
The competencies of competitor companies differ from each other often. Collaborative agreements provide companies to gain varied knowledge and specialties with less R&D costs. Also competitors can access each other’s established markets with collaborative ventures.
Nevertheless, the accomplishment of an international collaborative venture depends on the harmony between national and organizational cultures of the partners. Hence, the cultural examination of the venture has a crucial role in the success. The partners should state a suitable integration method considering the cultural impacts in the negotiation period.
2.0 Introduction
2.1 Definition of the International Collaborative Venture Collaborative ventures, sometimes called international partnerships or international strategic alliances, are essentially partnerships between two or more firms. They help companies overcome together the often substantial risks and costs involved in achieving international projects that might exceed the capabilities of any one firm operating alone. (Cavusgil, et al. 2011) Cavusgil, et al. (2011) also state that there are two basic types of collaborative ventures: equity joint ventures and project based, non-equity ventures. In this essay we are going to examine an equity joint venture between Sony and
0.1 Examination of the Sony Ericsson Joint Venture as an International Collaborative Venture and evaluating the rationales and motives from each partner’s perspective.
0.2 For: CEM Assignments Office
Date: 16/10/2013
0.3 From: Deniz Berkan Unsal
Moscow, Russian Federation
1.0 Summary
The competitive nature of today’s international business world pushes the companies to find a common ground between each other. Even market giants have considerable tendency in creating collaborative arrangements with their competitors in order to keep their positions in the market.
The competencies of competitor companies differ from each other often. Collaborative agreements provide companies to gain varied knowledge and specialties with less R&D costs. Also competitors can access each other’s established markets with collaborative ventures.
Nevertheless, the accomplishment of an international collaborative venture depends on the harmony between national and organizational cultures of the partners. Hence, the cultural examination of the venture has a crucial role in the success. The partners should state a suitable integration method considering the cultural impacts in the negotiation period.
2.0 Introduction
2.1 Definition of the International Collaborative Venture Collaborative ventures, sometimes called international partnerships or international strategic alliances, are essentially partnerships between two or more firms. They help companies overcome together the often substantial risks and costs involved in achieving international projects that might exceed the capabilities of any one firm operating alone. (Cavusgil, et al. 2011) Cavusgil, et al. (2011) also state that there are two basic types of collaborative ventures: equity joint ventures and project based, non-equity ventures. In this essay we are going to examine an equity joint venture between Sony and
References: ° Anon (2011) Ericsson and Sony go separate ways. The Local, 27 October. Available at: http://www.thelocal.se/36986/ [Accessed 12 October 2013]. ° BBC News Business (2011) Can Sony succeed where Sony-Ericsson partnership failed? Available at: http://www.bbc.co.uk /news/business-15285258 [Accessed 12 October 2013]. ° Ericsson (2013) The Leader in Mobile Communication Patents. Available at: http://www.ericsson.com/the company/company_facts/patents [Accessed 11 October 2013]. ° Ericsson (2002) The Annual Report 2001 Financial Statements. Available at:http://www.ericsson.com/res/investors/docs/annual-reports-1970-2002/annual01_financial_en.pdf [Accessed 12 October 2013]. ° Kapner S (2001) ‘Ericsson and Sony Discussing Mobile Phone Joint Venture’. The New York Times, 20 April. Available at: http://www.nytimes.com/2001/04/20/business/ericsson-and-sony-discussing-mobile-phone-joint-venture.html [Accessed 11 October 2013]. °Sonymobile (2012) Sony Completes Full Acquisition of Sony Ericsson. Available at: http://blogs.sonymobile.com/ press_release/sony-completes-full-acquisition-of-sony-ericsson/ [Accessed 10 October 2013]. ° Tharp A (2009) Joint Venture: Sony Ericsson. Available at: http://tortora.wordpress.com/2009/04/27/joint-venture-sony-ericsson/ [Accessed 10 October 2013]. ° Wallace, R. (2004) Strategic Partnerships: An Entrepreneur 's Guide to Joint Ventures and Alliances, Chicago: Dearborn Trade, A Kaplan Professional Company. ISBN-13: 978-0-79-318828-4