Transferability of Teck’s Competitive Advantage Teck Zinc has established itself as a world leader in zinc production and technology. However, as Hu points out, competitive advantages and success for a company at home, does not always assure commensurate success abroad. When considering Teck’s expansion into India, there are many ways in which this may be accomplished : Mode of Entry Advantage Disadvantage Exporting Ability to realize global scale High transportation economies cost/Potential tariff barriers/Problems with marketing Joint Ventures Access to partner’s Difficulties achieving global knowledge strategic coordination Lack of control over technology/Political Sharing development costs acceptability? and risks Wholly owned Protection of technology Assumption of all development subsidiary and risk/Establishment of tight control necessary for achieving global strategic coordination Table 4 Options of Entry into the Indian Market – Of these, establishing a wholly owned Indian subsidiary requires the highest commitment and has the highest risks. Better options early on would be to establish the Teck brand by means of exporting both zinc concentrates and refined zinc metal to make up for forecast supply shortfalls within the next 5 years. The potential for a Joint Venture may also be appealing. Teaming up with a domestic Indian company could help in several ways :
Transferability of Teck’s Competitive Advantage Teck Zinc has established itself as a world leader in zinc production and technology. However, as Hu points out, competitive advantages and success for a company at home, does not always assure commensurate success abroad. When considering Teck’s expansion into India, there are many ways in which this may be accomplished : Mode of Entry Advantage Disadvantage Exporting Ability to realize global scale economies High transportation cost/Potential tariff barriers/Problems with marketing Joint Ventures Access to partner’s knowledge Sharing development costs and risks Difficulties achieving global strategic coordination Lack of control over technology/Political acceptability? Wholly owned subsidiary Protection of technology Assumption of all development and risk/Establishment of tight control necessary for achieving global strategic coordination Table 4 – Options of Entry into the Indian Market Of these, establishing a wholly owned Indian subsidiary requires the highest commitment and has the highest risks. Better options early on would be to establish the Teck brand by means of exporting both zinc concentrates and refined zinc metal to make up for forecast supply shortfalls within the next 5 years. The potential for a Joint Venture may also be appealing. Teaming up with a domestic Indian company could help in several ways :
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