Global Competitive Strategy
GCS Assignment 3 (GCS A3)
IMZO Factory an organization from Uzbekistan which has potential for internationalization but
isn’t currently a multinational or global organization.
IMZO is a unique project for the Republic of Uzbekistan. This is a technological breakthrough in
the fabrication of window and door structures. 70000 м2 production space and 1000
experienced professionals. To allow the company to double its production volumes Imzo begins
construction of production bases in Nukus, Namangan and Navoi.
This organization could do business not only in one country, but nearby CIS countries like
Kazakhstan and Russia. A good strategy for entering a foreign country is JV. As we know joint
venture consists of two companies establishing a jointly-owned business. The two companies
would then provide the new business with a management team and share control of the joint
venture. Without spending excessive amounts of capital, a joint venture affords each party
access to the resources of the other participant. Joint ventures also provide the benefit of
shared risk. But it will take time and effort to build the right relationships and partnering with
another business can be challenging like creating a joint venture may result in more complex
tax arrangements. To avoid this problem there need to be an Agreement. A joint venture board
should be established and agreement reached as to the scale of investment required from each
party. Whether the parties will extract surplus cash or reinvest it into the business, along with a
potential exit strategy, are other significant considerations. More over there is a need in
Development. The strategic partnership, as well as the relationships between parties, are
ongoing, rather than static, and need to be developed. Frequent communication is required to
foster a feeling of belonging amongst employees on both sides.