Tianjin Merlin Gerin
Author: Schütte, Hellmut ; Dugelay, EricINSEAD Area: Asian Business and Comparative ManagementPublisher: Fontainebleau : INSEAD Euro-Asia Centre (EAC) 1990.Language: EnglishDescription: 22 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: When China opened up in 1979, the large French manufacturer of electricity distribution equipment Merlin Gerin moved very quickly and signed a licensing agreement with a Chinese factory for the production of circuit breakers. Soon afterwards the company realised that they had made a mistake. Lengthy negotiations started to found a joint venture with another partner in Tianjin. After the opening of the factory in 1987/88, production began slowly and sales were disappointing. Finally, in 1990, the project seemed to move towards profitability. But the investment and starting costs will probably never be paid backPedagogical Objectives: · To demonstrate the risks linked with an early market entry into a new market. · The problems of assessing an enlarging market and operating in a volatile environment · Partnership problems particularly in a socialist country.| Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Europe Campus INSEAD Publications Display | Consultation only | BC000047 |
Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>
· To demonstrate the risks linked with an early market entry into a new market. · The problems of assessing an enlarging market and operating in a volatile environment · Partnership problems particularly in a socialist country.
When China opened up in 1979, the large French manufacturer of electricity distribution equipment Merlin Gerin moved very quickly and signed a licensing agreement with a Chinese factory for the production of circuit breakers. Soon afterwards the company realised that they had made a mistake. Lengthy negotiations started to found a joint venture with another partner in Tianjin. After the opening of the factory in 1987/88, production began slowly and sales were disappointing. Finally, in 1990, the project seemed to move towards profitability. But the investment and starting costs will probably never be paid back
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