Subject category:
Marketing
Published by:
China Europe International Business School
Length: 12 pages
Data source: Field research
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Abstract
This is the third of a three-case series (502-039-1 to 502-041-1). On 1 April 1997 BP Fujian Ltd, a joint venture between British Petroleum and the Fuzhou Municipal Coal Gas Company, opened for business in Fuzhou (the capital of Fujian province) with its LPG filling and distribution operation. Unfortunately, the company runs into major trouble when most of its distributors start selling cheap gas from sources other than BP Fujian. There is a possibility even that the joint venture will be shut down. This case describes how the joint venture saves itself by successfully taking over the distribution of its products. Nevertheless, new problems arise.
About
Abstract
This is the third of a three-case series (502-039-1 to 502-041-1). On 1 April 1997 BP Fujian Ltd, a joint venture between British Petroleum and the Fuzhou Municipal Coal Gas Company, opened for business in Fuzhou (the capital of Fujian province) with its LPG filling and distribution operation. Unfortunately, the company runs into major trouble when most of its distributors start selling cheap gas from sources other than BP Fujian. There is a possibility even that the joint venture will be shut down. This case describes how the joint venture saves itself by successfully taking over the distribution of its products. Nevertheless, new problems arise.