The joint venture with a major facility in India is a crucial benefit for Lincoln Electric. With the advantage of a large base, understood the politics, economic conditions and competitive situation in India will help Lincoln a better understanding of the Indian market. Joint ventures help Lincoln reduce costs more than the acquisition or construction of new facilities. This causes expensive and high risk. Do not build production base so Lincoln serve the product to market by importing products from other places. However, Lincoln should build production in place, this will reduce the costs, advantages over painting soup. This is true with the strategy of cost leadership that Lincoln made.
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