chapter  8
30 Pages

Entering the International Market

An American multinational company, “AMSUPP,” had a very strong market position in an industrial supplies business in all major countries except Japan. There they had set up a joint venture with the leading Japanese company in the industry, “NIPPONSUPP.” The venture gave AMSUPP a 45 percent ownership in return for technology transfer as well as capital investment. In discussing global coverage and global market share, the AMSUPP managers included Japan in their calculations. With Japan, AMSUPP’s global market participation looked very complete. Japan’s inclusion was particularly important and AMSUPP’s managers identified the country as the most globally strategic country, even more than the United States. Unfortunately,

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