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Universal World Alliance Proposal : Sony Joint Venture

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REAL WORLD ALLIANCE PROPOSAL: SONY JOINT VENTURE WITH XIAOMI

Table of Contents

1. Introduction
2. Strategic Fit & Motives
3. Partner Selection & Management
4. Governance & Structure
5. Industry Analysis (Porters 5 Forces)
6. Performance Management
7. References

1.Introduction (Brief)

The aim of this report is to establish the feasibility of a new joint venture between Sony & Xiaomi within the telecommunications industry. The venture will be focused on sharing technologies, risks & distribution channels and will proposes a 50/50 equity joint venture between Sony and Xiaomi, to form Sony Xiaomi LTD. The new entity will focus on enhancing profitability and market share for both companies with product focus on smartphones.

2. STRATEGIC FIT & MOTIVES

SONY: Sony has been experiencing a downturn in the mobile industry with profits consistently reducing over the last few years. The volatile nature of the Telecommunications industry and intensity of the competition are some of the reasons for this situation. The mobile division has been affecting Sony’s overall business structure and to address this negative trend the company is looking to ally with a partner in order to minimize risks and capture profits (Sony.net, 2016). Xiaomi will be a good strategic fit as they have experienced enormous growth especially within the Chinese market. They have a well-established customer base, and their smartphones are selling extremely well. A partnership with Xiaomi

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