GE Joint Venture Case 1. GE preferred acquisition or greenfield ventures as an entry mode rather than joint ventures because control of its technology is risked by given to its partners, and shared ownership arrangements could lead to conflicts.

2. General Electric began to favor joint ventures in recent years because they started offering several advantages. GE sees joint ventures as a great way to dip its toe into foreign markets where it lacks local knowledge, a good way to share the risk of building a business in a nation where it lacks local knowledge and also they believe that by entering a joint venture into nations where it lacks a presence is the only way of attaining the aggressively growth goals that they have adopted. Joint ventures offered firms the opportunity to share costs and risks while giving joint control to both partners The global economic crisis had a major impact on GE preferences because joint venture may not have given GE all the control they wanted but it worked in their favor by lessening the cost and risk associated with global ventures. The use of joint ventures eventually gave GE access to knowledge on local markets.

3. When entering into a joint venture risks that GE must assume is the problems that may arise which include objectives of the venture that aren’t clear and communicated to everyone whom are involved, some partners may also have different objectives for the venture. Some companies may lack in an area of expertise so it’s important to follow on the things that will be need to have success in a joint venture.

4. GE’s well-earned reputation for being a good partner benefits them because more companies are willing to do business with them, helps imply that they’re a low risk company to work with, and that they are an easy company to work with and is willing to compromise to meet the needs of potential partners. Less companies would be willing to work with GE if they tarnished their reputation and would result in their current partners trying to find a way to end their deal and future partners may want to come up with a compromise that would put GE more at risk and at fault if anything were to happen.

5. Assets that make GE an attractive joint venture is the pleasure of bringing stability to partnerships, access to knowledge, excellent management development, and they have a great history of making profits.