Visa's China strategy was challenged by the Chinese monopoly, China UnionPay Company (“CUP”), on all fronts after a few short cooperative years. Visa countered CUP's competitions by scaling the disputes up on the WTO level. What were the implications of Visa's history of monopoly and where would the disputes between two global monopolies lead?
This is a strategy and general management case that discusses regulatory barriers faced by multinational companies in new markets. It illustrates the dilemmas faced by foreign companies when they partner with local companies that are potential competitors in order to gain market entry. It also facilitates classroom discussion on strategies used by Chinese companies to leverage foreign partnerships to go global.