Shanghai NSE Electric Co. Ltd. (NSE) made a joint venture with Schneider Electric. This joint venture would allow the licensing of Schneider’s sole technology to NSE in China. NSE expected huge potential in the world shipbuilding market that always has a significant number of orders. NSE was confident in Schneider because of a strong integration. Later on, Schneider showed the intentions to issue a second license to SaierNico Electric & Automation, NSE’s outsourcing manufacturer. This reflected a significant growth by the competitors in the Chinese market, who sell under the same brand. The worst scenario was that the competitor had been cultivated by NSE. NSE’s CEO believed that the company had three choices: (1) retain this joint venture with Schneider; (2) made the joint venture with other established companies to expand the business; or (3) create more innovative environment at regional level to strengthen its own brand. The author, Miao Cui, has the affiliation with Dalian University of Technology.
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