Assignment 9: JCB in India Case Study



[Name of the Instructor]

[Date of Submission]

JCB in India: Case Study

Introduction

JCB has been a part of the Indian market since 1979 by pursuing the strategy of joint venture and later by acquiring Escorts became a sole owner of JCB India in the year 2003 (JCB website, 2012). In the context of Indian earthmoving and construction equipment industry, JCB occupies a pivotal place and has witnessed fastest growth. This assignment takes into account the case analysis of the joint venture of JCB UK with Escorts, an Indian engineering conglomerate.

Identification of Key Issues

The joint venturing between the two companies was conducted with an aim to manufacture back hoe loaders for the Indian market. For JCB, it was a first joint venture that has proven to be successful, enabling the company to gain a large share in various segments of the construction industry (Business Line, 2002). Despite this enrichment in the market share, a number of issues were faced by the company on the way to have a partnership with Escorts.

JCB considered that the partnering arrangements have limited its expansion opportunities. The production capabilities of JCB were having an aim to serve domestic market as well as to earn revenue by making exports. The company's operations in India serve as a hub to cater the South East Asian and Middle East markets (The Financial Express, 2003). The company in order to succeed in the Indian market used same high standards as it used to follow in the rest of the globe. Design center of the company has been made up to a mark that it will ensure the providence of fully tailored machines that best suits to the working conditions and environment of India,

In order to have a joint venturing with an Indian company, JCB was required to share its resources with the partner. The key issue was that sharing of the organization's resources specifically the technology will lead to the loss of competitive advantage that is internationally enjoyed by JCB.

Problems and Opportunities

JCB on the basis of its technological resources was enjoying a competitive advantage in the machinery industry. On the way to expansion in India, licensing agreements have been avoided by the company on the basis that being a part of such agreements will not enable the organization to have a required control over its technology. The company was operating with fear that if the technology ...