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Case Memo – Case 3: After the Breakup: the Troubled Alliance Between Volkswagen and Suzuki.

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1. What was the rationale for the partnership between Volkswagen and Suzuki?

Volkswagen wants to enter the fast-growing Indian market. But it lack of the small car technologies and the partner to help it enter Indian market. In Indian, Suzuki is the biggest market share holder. Suzuki also can provide the small-displacement motors technologies to Volkswagen to help it enter Indian market. Suzuki is lack of the technology on gas-electric, electric vehicles and other fuel-efficient cars. This cooperation can provide the technologies the others want which make this partnership happen.
2. Analyze the reasons for the break-up of the Volkswagen and Suzuki partnership

Volkswagen’s annual report
In March 2011, VW termed Suzuki as its 'associate' in its annual report. The disagreements between the two partners only escalated.
Cultural mismatch
In order to the cultural differences, they failed to build mutual trust.European companies were fast in making decisions, but sometimes things are a little different in Japanese culture.
Disagreements in technology sharing
Volkswagen and Suzuki failed to share technology to each other. They wanted the modern technology from each other but are not willing to reciprocate.
Problems in policy and cooperation
The media war between the companies got wilder by the day.They damaged each other in their statementand deepened the contradictions between the two companies.

3. What role does culture play in a trans-border / transcontinental alliances?

Culture is playing an important role in a trans-border /transcontinental alliances. There are many different culture exist in alliances, even belong to same religion or same nation. There are many culture exist in the world, some culture will affect the alliance by their exclusivity or inclusivity. If there is an alliance has a member which owns an exclusivity culture, it will play a

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