Abstract
In 1996, Wahaha established 5 joint ventures with Danone. 10 years of smooth development almost made the co-operation a success story. However, in 2007, Danone launched a series of lawsuits against Wahaha and insisted that Wahaha should transfer its trademark to the joint ventures immediately according to an agreement signed by both parties 10 years ago. Wahaha disagreed with Danone and released information that it was Danone that breached the contract which led to the current complicated situation. In this case, students are expected to analyse what factors actually trapped the co-operation in such a complicated situation. Failure to understand the intrinsic gaps could bring about serious and even fatal partnership / alliance problems. Firms which intend to expand their business in a culturally different country must learn local 'rules of the game' and respect local 'traditions'. Otherwise, using dogs' language to communicate with cats could even destroy the value of their already established brands.