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Multi National Coproprations (MNCs) are gaining competitive advantage by leveraging core strengths across both geographies and partners. From a geographic standpoint, this could be termed “horizontal capability building” where capabilities resident in China, India or other markets are leveraged in the other respective markets and beyond. For example, across the China-India geography, there is a full value chain of low-cost capabilities with the opportunity to achieve scale within those two markets. These scaled-up capabilities can then provide the foundation for successful global market expansion. For foreign MNCs, local partners in the Chinese and Indian markets can evolve from “market access partners” to “low-cost-structure-providing go global partners”. In the case of Chinese and Indian companies looking to go global, foreign MNC partners can evolve from “technology and know-how partners” providing competitive advantage in the local market to “brand-and-distribution-providing go global partners.” From either perspective, partnering provides an opportunity to accomplish far more than either party could accomplish alone.
Nov. 16 , 2010




