The International Marketing Analysis China Aerospace - 825 Words

The International Marketing Analysis: China Aerospace (Case Study Sample) Content: Name:Unit:Date:China Aerospace.Part 1.The Chinese Aerospace has developed the ARJ21 and C919 through a joint venture. Although the joint venture has the advantage of filling the knowledge gaps which the Chinese aerospace team lacks, it also has several challenges that it is faced which include; delays in the manufacturing and assembly by either party involved, difficulty in decision making that is the procedure to reach an agreement is time-consuming. In our case, we will discuss this challenges in details below.A delay is a problem for almost all industry that operates as a joint venture. A delay may be as a result of one manufacturing firm unable to deliver the components that it was assigned to work on in time (Czinkota et.al, 641). Depending on the importance of such component, the final assembly may be delayed. In this case, the Chinese Aerospace had contracted different Western firms to produce the components that are essential for the production of aircraft; th is means a delay in delivery of such component will imply a delay in the final overall assembly of aircraft. The delay always lead to time consuming and increases the overall production cost. So delays are challenges associated with a joint venture, unless there is a restriction in the time limit for the work to be done and accommodating of any eventuality in the schedule so as to accomplish the work.The other challenge with joint venture is decision making takes too long, and it is time-consuming. For example, the COMAC has taken a lot of time to arrive at the decision with Ryanair to design the C919 aircraft (Czinkota et.al, 642). Decision taking too long to reach into an agreement implies a lot of costs incurred as the members sent their representatives to discuss and come up with the solution. The cost associated with decision taking too long include traveling expenses of COMAC representatives, accommodation cost and others which may be expensive in the long run.Part 2.General E lectric Company is contracted by the COMAC to produce the ARJ21 engine. Previously the General Electric Company were partners with the Western Aviation industry with whom they had acted as system integrators, but since they reach an agreement with COMAC, the COMAC now plays a role as system integrators. Through this agreement with the General Electric Company, the Chinese aerospace industry is now expanding and becoming a serious competitor to the Western Aviation industry (Czinkota et.al, 641). Since the General Electric Company is under the COMAC in the ARJ21 project, the Company could be subjected to problems such as the loss of partnership with the Western Aviation Industry and as well as loss of license.Since General Electric Company agreed that COMAC should act as system integrators, a role that COMAC had never played a part of because of the strong influence and economic power of the Western Aviation industry. Therefore, it was a big step for the Chinese as well as a step beh ind for the Western (Czinkota et. al, 641). Since General Electric Company performs all its operation with the support of the Western, then terminating partnership will be the beginning of the downfall of the company because major policies formed and implemented are basically for the company. The other effect of terminating partnership is that the company may lose some donations and funding of different projects which they normally receive. Although they will receive funds from the COMAC, it will not be for a long period as the COMAC is contracted to them to produce engines of ARJ21 and once the engine is ready then, the funding stops. So in the general loss of partnership will be the beginning of the company downfall.As the General Electric is operating under the license offered by the Western meaning that withdrawal of license of operation of the company will imply shutting down. The Western can withdraw the license of operation because the Company is promoting COMAC who are compe titors of the Western. By removing the license, the General Electric will collapse, and this will result in a loss for both COMAC and the company itself.Part 3.The C919 is the recent aircraft which the COMAC has developed. The C919 is struggling with market challenges which is an integral component as in any business once you have introduced the product, then you begin to sell once there is clearance in all the legal framework. This legal framework mostly follows a lot of procedures mainly if the product produced will compete with the locally produced. For example, the COMAC may find it hard to obtain the license to market the C919 in Western regions be...