HP Inc. Joint Venture Partner Selection in South Korea
This paper evaluates three South Korean conglomerates — LG, Daewoo, and Samsung — as potential joint venture partners for HP Inc.'s strategic expansion into South Korea. Drawing on each candidate's financial performance, diversification, supply chain experience, and prior joint venture history, the paper assesses how well each firm's core competencies complement those of HP Inc. The analysis reveals that while Samsung offers the highest profitability and Samsung's scale offers advantages, its litigation risks and supply chain controversies are concerning; Daewoo's focus on energy reduces its likely commitment to an IT-focused alliance. LG, despite lower profit margins, is ultimately recommended as the most suitable partner due to its electronics focus, proven joint venture experience, and strong motivation to benefit from the alliance.
- Introduction and Strategic Context: HP Inc.'s expansion goals and JV criteria
- Candidate Companies Overview: Profiles of LG, Daewoo, and Samsung
- Assessment of Candidate Companies: Comparative evaluation against HP's strategic needs
- Investment Recommendation: LG recommended as optimal JV partner
- References: Full list of cited sources
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What makes this paper effective
- Applies a consistent evaluative framework — complementary competencies, financial stability, and JV experience — to all three candidates, ensuring a fair and structured comparison.
- Grounds candidate assessments in specific financial data (e.g., LG's 0.44% net profit margin, Samsung's 12.93% profit margin) rather than relying on generalizations.
- Acknowledges the trade-offs of each option before arriving at a recommendation, strengthening the credibility of the final choice.
- Uses a mix of corporate sources, financial databases, and strategic management literature to support claims.
Key academic technique demonstrated
The paper demonstrates comparative strategic analysis, systematically assessing multiple candidates against shared criteria derived from the literature on joint venture partner selection (Mintzberg et al., 2008). This technique moves beyond description to show why one option is preferable relative to the others, a hallmark of applied business analysis.
Structure breakdown
The paper opens with an introduction establishing HP Inc.'s strategic context and the criteria for partner selection. It then profiles each candidate (LG, Daewoo, Samsung) before assessing each against those criteria. The final section delivers a justified investment recommendation. This introduction–description–assessment–recommendation structure is standard in business case reports and is executed clearly here.
Introduction and Strategic Context
HP Inc. is a well-known leading player in international markets, focusing on personal computers, printers, and related hardware (HP Inc., 2016; Kitagawa, Jump, & Lam, 2016). The firm emerged in 2015 following the split of the former HP company (Kitagawa et al., 2016). HP Inc. is now seeking to expand and increase its footprint, but has suffered as a result of a slow economy — reflected in the announcement that the firm planned to cut between 3,000 and 4,000 jobs over the following three years due to sluggish sales (Reuters, 2016). CEO Dion Weisler stated that the firm expected conditions to remain uncertain and markets volatile. The firm maintains a clear focus on its core products: personal computers and printers.
The strategic recommendation explored in this paper is that HP Inc. target South Korea for expansion through a joint venture with a suitable local partner. When identifying and assessing potential joint venture partners, candidates should possess characteristics, resources, and/or core competencies that are complementary to those held by the initiating firm (Mintzberg, Ahlstrand, & Lampel, 2008). Accordingly, this paper assumes that an ideal joint venture partner for HP Inc. should bring a high level of knowledge regarding the South Korean market. Given that HP Inc. has also faced financial pressures, it is further desirable that any joint venture partner not only contribute additional financial resources, but also demonstrate a degree of financial stability.
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