Weiqin Luo
(School of Management, Zhejiang University, Hangzhou 310058, China)
Abstract：Zhejiang Gaint Elevator co., LTD was founded in 1978, as one of the first batch of companies to get elevator manufacturing licence in China. It established stable and strong basis in product structure, management style, factory infrastracture, sales network and service system after years’ development. In 2005, Gaint and Kone Group found the joint venture, Gaint Kone, with 60% share in Gaint and 40% in Kone. The founder of Gaint, Qiang Jiang, acted as president and general manager of the joint venture. In 2011, Kone Group and Zhejinag Gaint signed the contract to transfer the possession of 40% share of the joint venture at the cost of 950 million RMB, with the result of that Kone became the largest shareholder with 80% share. Through the establishment of the joint venture with foreign company, and capital increasing growth plan, Zhejiang Gaint developed to such an developing company with big growth rate, Gaint Kone. It is definitely a big success of joint venture strategy. But think deeply, is this an active choice of Zhejiang Gaint or it just had no choice when facing with the fierce competition?
Key words: Joint Venture, Developing Strategy, Capital increasing Growth, Gaiont Kone