The Tianjin Joint Venture in China
The events of this case took place in the Pigments & Additives Division of Clariant – a Swiss-based multinational chemical firm. Given increasing price pressures on the world market and the need to enter new markets, Clariant AG established a production joint venture in China. In particular, the case illustrates decision making in the single phases of the evolution process of a production joint venture. Starting from the business logic for the joint venture, the phases of partner selection, negotiation, alliance design, and alliance management are elaborated. The case also poses key factors necessary for cost efficient and trustful co-operation strategies. Additionally, it presents options to cope with the international and local market dynamics by modifying strategic usage of the joint venture. The case covers the period from 1994 to 2006.
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