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Otis elevator in Vietnam

Author: Schütte, Hellmut ; Probert, JocelynINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 1996. ; INSEAD Euro-Asia Centre (EAC) 1996.Language: EnglishDescription: 14p.Type of document: INSEAD CaseAbstract: Otis has negotiated two joint-venture contracts in Vietnam for the manufacture of elevators. The aim is to erect entry barriers and to build a service organization before their competition. But competition heats up immediately in a small, short-term oriented market suffering from regulatory uncertaintiesPedagogical Objectives: The case demonstrates the uncertainties of emerging markets such as Vietnam. The government's wish to receive technology for upgrading its manufacturing capabilities is contrasted with this realities of the market, and technical and managerial constraints of a large MNC. The role of the government as both regulator and partner is displayed.
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The case demonstrates the uncertainties of emerging markets such as Vietnam. The government's wish to receive technology for upgrading its manufacturing capabilities is contrasted with this realities of the market, and technical and managerial constraints of a large MNC. The role of the government as both regulator and partner is displayed.

Otis has negotiated two joint-venture contracts in Vietnam for the manufacture of elevators. The aim is to erect entry barriers and to build a service organization before their competition. But competition heats up immediately in a small, short-term oriented market suffering from regulatory uncertainties

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