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Global Partnerships
Strengths and Limitations of Global Partnerships
Global partnerships: Strengths and limits
The once-beleaguered U.S. automotive firm GM is currently in a highly lucrative partnership with the Chinese firm SAIC Motors. "SAIC-GM-Wuling (SGMW) sold its 1 millionth vehicle this year in China for the fourth consecutive year. It is the earliest the General Motors China joint venture has reached the milestone. In 2011, SGMW sold its 1 millionth vehicle in October. Through the first eight months of 2012, SGMW sold an average of 3,500 vehicles every day, up 15.2% from the same period in 2011" (GM China's SAIC-GM-Wuling JV Sells 1 Millionth Vehicle, 2012, GM News). GM is one of the most popular car manufacturers in China, despite only recently surviving bankruptcy proceedings and a temporary takeover by the federal government.
GM has benefited from the joint venture with SAIC by gaining an audience for its cars that is rapidly expanding, in contrast to the relatively stagnant American market. More and more Chinese people own cars, and China's emerging middle class ensures that GM's consumer base is growing. Moreover,...
In the U.S., large vehicles have gained a great deal of negative press as 'gas guzzlers.' "In 2011, Chinese consumers purchased 2.1 million SUVs, a figure that marks an impressive increase of 25.3% compared to 2010" (Gloan 2012). "Foreign brand vehicles enjoy a reputation for higher quality and brand value compared with most local competitors. Automakers are also beginning to sell China-made vehicles elsewhere, taking advantage of lower costs and proximity to other developing markets" (Hays 2012).
GM has produced smaller vehicles as part of the joint venture, given that not all Chinese consumers can afford luxury vehicles like SUVs. SAIC-GM-Wuling Automobile recently began a new factory which is designed to "produce vehicles from the Baojun family. The Baojun brand of small, inexpensive cars was created in 2010 to address growing demand for affordable passenger vehicles in China and is aimed at competing with local auto brands, including those sold by Zhejiang Geely Holding Group Co. And BYD Co" (GM's Micro-Van Joint…
References
Gloan, Ronan. (2012). SUVs becoming increasingly popular in China. Left Lane News.
Retrieved: http://www.leftlanenews.com/suvs-becoming-increasingly-popular-in-china.html
GM China's SAIC-GM-Wuling JV sells 1 millionth vehicle. (2012). GM News. Retrieved:
http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2012/Sep/0914_china_wuling_million.html
http://www.nasdaq.com/article/gms-micro-van-joint-venture-opens-new-plant-in-china-20121118-00058#.UKvelYYXj1U
Retrieved: http://factsanddetails.com/china.php?itemid=360&catid=9&subcatid=61
http://sbinfocanada.about.com/od/management/a/jointventure.htm
Furthermore it has become critically necessary to be equipped technologically in handling today's increased IT demands for business communication. Bibliography Video Conferencing (2006) GlobalMedia. Online available at: www.globalmedia.com. Hart, Amy (2001) Global Communication Warming - The CEO Refresher. Online available at http://www.refresher.com/!warming.html. Martin, Jeannet S. And Chaney, Lillian H. (2006) Global Business Etiquette: A Guide to International Communication and Customs. Online available at http://doi.contentdirections.com/mr/greenwood.jsp?doi=10.1336/0275988155. Global Business Support: Creating the Infrastructure for International Business Communication
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