Tucker Graphics and Nihon Ichiban Technology
The case presents the Tucker Graphics Inc. an American company that specializes in graphics work for advertisements in magazines andnewspapers, and Nihon Ichiban Technology, a Japanese manufacturer of scanning and printing equipment. Nihon Ichiban internationalization strategy began by promoting their newest technology in digitalprinting at an industry trade show in Los Angeles. Yoshio Inoue, president of the company, met and caught the attention of Bruce Davidson, Tucker’s owner, with their relatively new technology and sampledocuments brought from Japan.
After first discussions and visits to Nihon’s headquarters, and the promise from Nihon Ichiban to be attentive and flexible to Tucker’s needs, in December 1990,Tucker signed a contract with Nihon to purchase one digital printer for $1.5 million. The contract also stated that the equipment will be delivered 6 months after the contract date, one third of the pricepayable upon signing, one third upon installation, and one third six months after the installation. Tucker will purchase all consumables from Nihon for five years, and Nihon will have to reimburseTucker in case of a lower price sale to their competitors within the same five year period.
In the following months, Tucker Graphics made few demands to Nihon like that the printer should handleheavier paper and a faster processor than the original, that the 600 dots per square inch be increased by 50% to allow higher quality color, and the new delivery schedule to be met. Tucker hold theirsecond and third payments even after the printer was installed in January 1992. Several problems with the equipment forced Nihon Ichiban to send their engineers to repair the printer until it complieswith Tucker’s expectations.
While the problem was fixed and the second installment paid, Tucker refused to send the third and final payment until successful improvement of the printer image and...