Let us assume that the selected company has decided to enter the markets of China and Japan. At this stage, the most reliable strategy is to create Joint ventures, and there are several reasons for this decision. There is a widespread misconception that the peoples of all Asian countries have the same values, views, and way of thinking. In fact, Asian cultures have several common characteristics, but each of them differs from the other by certain cultural elements and generally accepted business norms (Insight, 2019). Therefore, it is important to understand cultural or business norms unique to a particular country or ethnic group. In this case, the most reliable solution is to join forces with a company for which this market is native.
Thus, creating a company in the Chinese and Japanese markets will eliminate several negative consequences associated with ignorance of market features. The fact is that Asian consumers have some specific features that can be primarily known only to companies that have been working with them for a long time (Insight, 2019). This is especially true for businesses that focus on food and groceries. A company that is not familiar with all the features and promotes products that are popular in the United States risks facing rejection from Asian consumers. Consequently, creating a third company in association with an Asian company will avoid many costs.
In markets that are difficult for individual development, with political barriers, a high level of competition, or significant cultural differences, Tastykake should open a joint venture with a local company. This is important because it has extensive experience in organizing the production process in the restaurant business (Insight, 2019). Therefore, it is necessary to conclude that interaction is the key to its success in a market with many specific features. In addition, the risks will not be so significant in case of failure due to the combined efforts. Also, the advantage is that the company does not necessarily have to enter the market under its own brand initially. Thus, in the case of an incorrectly chosen strategy, there will always be an opportunity to try again without significant loss of reputation.
Reference
Insight. (2019). Joint ventures are the best way to enter asia. Outroll. Web.