Government relations JVs can help smooth potential government protection policies Access to Raw Materials JVs may be a means of gaining access to raw materials Local Market Information JVs may be a means to gain much needed local market information In considering the transferability of Teck’s competitive advantage, the different methods of entry offer different potential for success. May be Transferable May be Non- Transferable Quality Export although would not Subsidiary depending on – – have brand recognition raw materials availability and skills of workforce JV would require sharing of – technology Service Support Export , JV and subsidiary – distance may be a factor Customizable Export as per current JV and Subsidiary – – Production operation depending on transfer of proprietary technology Cost leadership JV and Subsidiary take Export high cost of – – advantage of low cost of transportation labour Distribution Export take advantage of JV and Subsidiary – – current routes to Asia/may require development of new require new warehouses distribution routes Tacit Knowledge Export as per current JV and Subsidiary difficult to – – operation transfer knowledge of management Table 5 Transferability of Teck’s Competitive Advantage –
Government relations JVs can help smooth potential government protection policies Access to Raw Materials JVs may be a means of gaining access to raw materials Local Market Information JVs may be a means to gain much needed local market information In considering the transferability of Teck’s competitive advantage, the different methods of entry offer different potential for success. May be Transferable May be Non- Transferable Quality Export – although would not have brand recognition JV – would require sharing of technology Subsidiary – depending on raw materials availability and skills of workforce Service Support Export , JV and subsidiary – distance may be a factor Customizable Production Export – as per current operation JV and Subsidiary – depending on transfer of proprietary technology Cost leadership JV and Subsidiary – take advantage of low cost of labour Export – high cost of transportation Distribution Export – take advantage of current routes to Asia/may require new warehouses JV and Subsidiary – require development of new distribution routes Tacit Knowledge Export – as per current operation JV and Subsidiary – difficult to transfer knowledge of management Table 5 – Transferability of Teck’s Competitive Advantage
Chris%20D%27Odorico.docx