Hisense-Hitachi Joint Venture: Expanding Internationally Harvard Case Solution & Analysis

Hisense-Hitachi Joint Venture: Expanding Internationally Case Study Solution

Alternatives:

Alternative –Manufacturing of efficient products

Transformation of current products with innovation to minimize the need of installation.

Advantages:

• This will eliminate the need of installation process for which training of distribution team is required.
• It improves the quality of product by making it less energy efficient.
• It saves time of both the manufacturing, installation and the distribution team reducing the additional labour work.

Disadvantages:

• It will reduce the need of labour decreasing the employment rate of country.
• Minor errors might lead in the failure of equipment. (BIEDERMAN, 2015)

Alternative –Franchise business

Franchising of business when it can easily be replicated will assist customers to contact business’s franchises for their queries or issues.

Advantages:

• Customers’ can visit franchise of the organization to get their work done or call them for any query they have.
• The issue of training of employees of the distribution team to install the product will be solved.

Disadvantages:

• Additional cost and time might not attract customers to visit their particular brands’ franchise.
• Replicated services can easily be provided by local or domestic labour in their nearest area.

Alternative –Identification of Ideal customers

Before expanding business in any new location, evaluate if they are your target customers or not.

Advantages:

• It will assist the organization in evaluating the product sale in their particular target.
• It will provide organization with the identification of profitable base of customers by offering them with right products.

Disadvantages:

• It is a very time consuming process as it will require time in evaluation of target population.
• The failure in better evaluation of target market might result in loss of sale. (Sadler, 2014)

Recommendation:

Based on the analysis of the organizational internal and external factors, the organization had been facing issues in expanding its business. Therefore, the management of the organization is suggested with three different alternatives with their pros and cons to make it easy to take a decision. The three alternatives are manufacturing of efficient products, franchise business and identification of ideal customers. Though, by considering each alternative’s pros and cons manufacturing of efficient products to reduce to need to installation process suits best for the organization. As it will enhance the interest of customers and no expected risk of decline in revenue.

Conclusion:

The organizations had been working in their own domains of sale in their target market. The joint venture of the organization was to provide each organization with a benefit by expansion of business internationally. Due to some reasons, the sales of the organization had badly affected to which alternatives have been suggested in order to overcome the issue and improve the sale of the organization.

Exhibits:

Exhibit – SWOT Analysis

Exhibit – Porter’s Five Forces Model

Exhibit 3 - Alternatives

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