Nora- Sakari Case: A proposed JV in Malaysia.

Motivations Nora (In the telecommunications industry) Learn the technology Have a specific contract (won the government bid), but they do not have the technology Long-term goal: Why they wanted the technology? Attractiveness of market: Malaysia has low HP penetration rate and Msia government is investing heavily in this industry. Diversification for the firm to grow. Product diversification (Strategic Plan) Currently they do not have technology, therefore needs the technology Nora could also use licensing as opposed to J.V Since they wanted to enter this product class, they wanted to learn the technology, therefore J.V is more crucial Sakari Wanted market access. Geographic diversification. Should Sakari have entered Malaysia? Appropriate choice of country? Pros: Malaysia as entry point for SEA market Cons: Limiting themselves by sticking with Malaysia, when they have a lot more choices, since its geographic diversification. Internal debates as to the country. Sakari could use licensing, instead of J.V. They could use licensing to share technology. However, they wanted to learn market knowledge. Therefore J.V is important as it is the best to learn.

Must consider fit. What are the alternatives? For Nora, is Sakari the ideal partner? Sakari technology is ideal, appropriate for this market. Allows Nora to use the components from open market. Gives them more flexibility. .

For Sakari, is Nora the ideal partner? -Yes, Nora has market knowledge and has connections to government. Has the resources it need to complement each other.