Globalization

In globalisation, many organisations are participating in foreign markets, the joint venture is a good choice for many companies that each partner can bring complementary strengths to the table, resulting in a competitive advantage for the participants collectively. Partners in a strategic alliance can benefit from many aspects of a cooperative relationship: access to unfamiliar or untapped markets, risk sharing, economies of scale, shared technology, and decreased costs. The U.S corning and Mexican Vitro companies commit themselves to contribute equity for the new company, as well as share their technology and skills. In return, they share both profits or losses and control over this organisation. However, this kind of joint venture couldn’t help them to penetrate quickly enough to create a competitive advantage in target market. And one of the most important in this issue is the culture difference between U.S and Mexico. In this essay, we are going to argue that Vitro and Corning shouldn’t dissolve because cultural conflict is not fatal, since there are many solutions to overcome problems.
1 The most likely original rationale for Corning and Vitro to establish this JV is related to the marketing element. First, JV marketing allows both Vitro and Corning to leverage their marketing efforts for the promotion of their own products, by just simply tapping into another business' customers. This can help the companies to gain access to wider markets and extend their marketing channels, with more opportunities to take their sales to the next level through increased exposure and endorsement. Second, JV marketing allows both Vitro and Corning to share distribution channels and methods to each other. This can help both companies to increase their efficiencies and competitiveness with reduced costs. Third, JV marketing allows Vitro and Corning to share advanced information about product development to each other. This can help both companies to create products faster with...