Shanghai NSE Electric Co. Ltd., a medium size producer of marine switch panels, had deliberated into a joint venture vis-à-vis Schneider Electric under which NSE was Schneider’s only technology licensee in China. NSE felt lucky as the world shipbuilding market was strong and orders were often full. With complete and close co-operation, NSE was assured in Schneider. However, Schneider declared it would issue a permit that was second to the outsourcing maker, SaierNico Electric & Automation of NSE.
This meant that a challenger that produced and sold products of the exact same brand would emerge in the Chinese marketplace. What was worse, NSE had prompted this competitor. The CEO of NSE considered that NSE had three alternatives: (1) continue to cooperate with Schneider; its business broadens and work with other strong firms; or (3) invest more in local initiation to develop its own brand.
Shanghai NSE Electric Co. Ltd. and Its International Cooperation case study solution
PUBLICATION DATE: October 10, 2014 PRODUCT #: W14502-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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