Audiotech Electronics Business Strategy - Essay Example

Audiotech Electronics is a business that has been successful in the United States. It deals in control consoles, in all its facets like manufacturing and installation, for television and radio stations, and studios. The organization has done well in satisfying its customers. However, it is currently suffering stagnation and is considering global expansion. It is clear that it cannot be business as usual due to the stagnation and global expansion is a brilliant idea. The business is big since it operates a 35,000-square-foot factory with 75 employees and I believe that it has the capacity to realize global expansion.

What is more viable? Should it consider a joint venture or hire a sales team of indigenous people in the countries that it enters? The dilemma is whether to employ a sales team of indigenous people in the countries it enters or to forge a joint venture. According to Emery (2011), “a joint venture is a strategic alliance between two or more entities to engage in a specific project.” Its difference with the partnership is that the former is for a particular undertaking while the later is for a long- term business relationship.

A joint venture is advantageous, for example, it ensures sharing of resources, skills and risks. However, it has myriad of problems like disparity in assets, expertise and investments of each entity, varied cultures and organizational management styles, and it requires thorough research and a long time to be able to establish and make operational (Emery, 2011).