Ideally, in a joint venture, each party brings to the table exactly what the other party needs, resulting in a combined entity that is more competitive in serving customers. The Marubun/Arrow joint venture is about as ideal as it gets.

Marubun Corporation is the largest independent distributor of electronic components in Japan, with excellent relationships with Japanese customers, fortified by outstanding design capabilities. However, as more Japanese customers transferred manufacturing outside Japan in the 1990s, Marubun considered how best to provide more efficient support to those customers. Arrow had the global presence, resources and capabilities. As a result, in 1998, the two companies formed a 50-50 joint venture: Marubun/Arrow.

The mission is to better serve Japanese customers who need support outside of Japan – specifically, in Asia Pacific and North America. By combining both parties’ strengths and capabilities, this joint venture provides superior support.

“In Japan, most customers are assigned to the distributor by the supplier. This is quite different from North America,” said Satoshi Fujino, CEO, Marubun/Arrow Asia, Ltd. “We have strong relationships with Japanese customers and suppliers. At the same time, we get Arrow’s extensive line card, IT resources and logistics, so we can service our Japanese customers just about anywhere.”

Mr. Fujino notes that Marubun/Arrow offers Japanese customers one-stop shopping, a single point of contact, and support wherever they manufacture their products.

In Asia Pacific, Marubun/Arrow has offices in Tokyo, Singapore, the Philippines, Thailand, Malaysia, Hong Kong, and within China in Shenzhen, Dalian, Namjin, and Shanghai. While consumer electronics represents the largest customer segment, the automotive segment also is expected to become a major element of the joint venture’s business mix.

The joint venture also has operations in North America to support Japanese customers who have or need manufacturing, sales, or purchasing operations in the region. Marubun/Arrow USA has offices in Denver, Santa Clara, San Diego, Dallas, Chicago, Atlanta, Detroit, Dayton and Orange County, plus a significant presence in Mexico. In North America, Marubun/Arrow provides design services for customers. The primary markets are the fax/copier industry, in-flight avionics such as in-flight movie delivery systems, digital TV, and automotive.

“We bring to the table our extensive line card and the resources to help our Japanese customers get their products produced in North America,” said Tom Dolan, president, Marubun/Arrow USA. Dolan says another advantage Marubun/Arrow USA offers is having English- and Japanese-speaking sales and engineering people. They communicate equally well with the customer’s engineers in North America or in Japan – something competitors in Japan and the United States typically cannot do.

If the first 10 years of the joint venture are any indication, the future looks bright for Marubun/Arrow.