The paper "International Market Strategy of Jobek and Hatteras" is a perfect example of a marketing assignment. Jobek is a multinational manufacturing company based in Brazil. It manufactures luxurious furniture and hammock which are then exported to international markets. Jobek originated from Germany where it acts as the headquarters then it moved to Brazil, China, Canada, and US distributors. Since 2009, the major markets for Jobek are Germany, Brasil, Spain, and France. Seven years ago, Jobek formed an international joint venture (IJV) with Hatteras. The Joint Venture started well with the Americans training the Brazilians who learned quickly in the building of a new joint factory.
The Hatteras, on the other hand, benefited from the venture because it brought the production closer to the consumer; China, Brazil, and the US. However, there was a great difference between the two companies as Jobek maintained a focus on environmental conservation by obtaining the wood for manufacturing the furniture from certified sources and this was their competitive advantage (Meyer and Peng, 2016). Hatteras was not concerned with environmental matters, but they considered low price as their strategy.
Due to this difference, conflicts arose, and the two companies lost trust in each other. The IJV was formed after 49.5% interest was sold from the company and the company is experienced significant losses and could not afford to buy back full control of the company. How would you evaluate the IJV between Jobek and Hatteras? Through the use of porter’ s five forces of competitive analysis, we can be able to evaluate both Jobek and Hatteras. However, the two companies went into a joint venture but there are still many competitive analyses that can be done for both companies. The consumers' power The consumers have a lot of impacts on the existence of an organization.
The joint ventures between Hatteras and Joblek should consider how their consumers react to their organization. If the customers are not much satisfied with the way, the venture is working then there is a potential risk to Joblek losing its customers. The customers might also contribute to price fixation since they determine the market price. When they are satisfied with the way they are handled by the venture then it would be good for Joblek to maintain a partnership with Hatteras. Competitive rivalry Jobek from the beginning had practiced environmental sustainability.
This was achieved by the company through the use of certified wood and this has been the competitive strategy of the company. On the other hand, Hatteras never cared for environmental protection rather, they focused on low prices. The Hatteras pressured Jobek to buy uncertified wood which was cheaper and there was a clear culture difference from this observation where the Europeans practiced environmental sustainability while Americans did not.
Because of this, the results of the IJV were negative especially to the Jobek side. Jobek sales dropped from 3 million US dollars to 100, 000 and this was mainly because the IJV agreement was not fully observed by Hatteras. Threat to substitution There was always an element of substitution when a joint venture between Jobek and Hatteras began with both companies benefiting from the venture because there were increased sales, cost-effectiveness, and cheap materials. For Hatteras, the joint venture was an advantage because Jobek was their biggest competitor and their alliance means a competitor is lost.
The other benefit which the Hatteras got was ease access to the European markets through Jobek distribution channels. Jobek, on the other hand, benefited from the alliance was able to access the US market and big chains such as Wal-mart and Hatteras products (Chen and Dimou, 2005, P 1735).
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