General Electric's (GE) 3 percent share in the European lighting market was very weak and below expectations. Significant increases in competition throughout many of their American markets by the European giant, Philips Lighting, forced GE to retaliate by expanding in Europe. GE's first strategy was an attempted joint venture with the Siemens lighting subsidiary, Osram, and with the British electronics firm, Thorn EMI. Negotiations failed over control issues. When recent events in Eastern Europe opened the opportunity for a JV with the Hungarian lighting manufacturer, Tungsram, which was receiving 70 percent of revenues from the West, GE capitalized on it.

Reference:

Pearce, J, A. Robinson, R, B. (2004). Strategic Management.

CITE THIS AS:

YouSigma. (2007). "General Electric Joint Venture with Tungsram." From http://www.yousigma.com.