Joint venturing in Taiwan

In 1987, Kikkoman Corporation, the world's largest manufacturer of soy sauce, began looking to the thriving island of Taiwan as a possible site for a manufacturing plant to serve both local and regional markets. Taiwan had a long history of soy sauce consumption and the Taiwan-based firm, President Enterprises, was supplying most of the soy sauce sold on the local market, while Kikkoman had limited access. The regime in Taiwan was increasingly receptive to foreign investment and President Enterprises was eager for an opportunity to improve the quality of its product and increase its market share through a joint venture. The author, Kikkoman Chairman and CEO Yuzaburo Mogi, describes his company's careful strategizing aimed at opening up the Taiwanese market and expanding its international production network.