Answer to Question 1
By collaborating with a family conglomerate, the foreign firm can: (a) reduce the risks, time, and capital requirements of entering the market; (b) develop helpful relationships with governments and other key, local players; (c) target market opportunities more rapidly and effectively; (d) overcome infrastructures-related hurdles; and (e) leverage FC resources and local contacts.
There are many examples of successful FC partnering. Ford partnered with Kia to introduce the Sable line of cars in South Korea and benefited from Kia's strong distribution and after-service network. Digital Equipment Corporation (DEC) designated Tatung, a Taiwanese FC, as the main distributor of its workstations and client-server products in Taiwan. DEC benefited from Tatung's local experience and distribution network. In Turkey, Sabanci entered a joint venture with Danone, the French yogurt producer and owner of the Evian brand of bottled water. Danone brought ample technical knowledge in packaging and bottling and a reputation for healthy and environmentally friendly products, but it lacked information about the local market. As the Turkish market leader, Sabanci knows the market, retailers, and distributors. The collaboration helped make Danone the most popular bottled water in the first year.
Answer to Question 2
Thanks for your help Worked like a charm.
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