A Taiwanese plastic manufacturers exported one of its products, bath covers, exclusively on Japanese dealer. President of the company has been approached to form a partnership in a new production facility in China with the second-largest customer, a Japanese dealer who also produces bathtub covers. The President reviewed the Company’s options: turn the proposal and expand its own in Taiwan, a partnership and produce tub covers exclusively for the other company in China … Read more »

A Taiwanese plastic manufacturers exported one of its products, bath covers, exclusively on Japanese dealer. President of the company has been approached to form a partnership in a new production facility in China with the second-largest customer, a Japanese dealer who also produces bathtub covers. The President reviewed the Company’s options: turn the proposal and expand its own in Taiwan, a partnership and produce tub covers exclusively for the other company in China, or turn the proposal and invest in its own factory in China. The president holds the company’s long-term strategies, the political future of a Taiwanese company in China, the status of its intellectual property as part of a partnership and the possible loss of its second largest customer. He also has plans for the company to address other products and to decide whether the company should be more actively pursued a marketing strategy to expand its market share.
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from
Terry H. German,
Ying-Ru Chen
Source: Ivey Publishing
19 pages.
Release Date: 4 July 2002. Prod #: 902A16-PDF-ENG
Plastics R Us Ltd. HBR case solution