The opening case explores the rationale behind the joint venture between Britain's JCB, a manufacturer of construction equipment, and Indian engineering conglomerate, Escorts. The two companies linked up to make backhoe loaders for the Indian market. The joint venture was a first for JCB and proved to be hugely successful. However, JCB felt the arrangement limited its expansion opportunities and eventually bought out its partner. Today, thanks to significant infrastructure investment in the country, JCB is a major player in both India and China. The company has continued to expand its presence in India and now relies on its factories in India to export to some 93 countries.

Discussion Questions

1. What did JCB learn from its experiences in India? Why did JCB, a company that had traditionally favored wholly owned operations, form a joint venture with Escorts? How did JCB's experience in India help it in its overall strategy?

2. What prompted JCB to buy out its partner? Do you feel JCB's concerns were valid? Why or why not

Answer rating: 100% (QA)

1 JCB learned several important lessons from its experiences in India The joint venture with Escorts allowed JCB to enter the Indian market more easil... View the full answer