The experience of Chinese technology acquisitions in the automobile sector has given him pause for thought. He must weigh up the likely return on investment, the skill of the company's workforce to adopt and develop new technology, as well as the role of competitors in the fast growing auto market in China. He has three options: purchase an equity stake as well as access to all those rights, purchase accessibility to Saab's intellectual property rights alone or do neither.
If he goes ahead with both of the first two alternatives, and in this regard the risk pays off, he will improve his own standing and that of his company. But if the gamble fails, not only reputation but potentially a lot of cash will be lost and much effort wasted in attempting to absorb a foreign product into present operations.
This is just an excerpt. This case is about STRATEGY & EXECUTION
PUBLICATION DATE: June 05, 2015 PRODUCT #: W15223-PDF-ENG
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