1.0 Introduction
The main purpose of this report is to carry out a critical analysis of the internalization process of a Multinational Company (MNC). According to Welch & Luostarinen (1988), internalization can be defined as the process in which firms increase their involvements in international operations. Therefore, throughout this report, an identification of the company current internalization pattern will be identify and a critical analysis of internalization theory related to the pattern will be carry out. At the end of this report, a new relevant strategies will be propose for Lenovo Limited to attain competitive advantage.
1.1 Company background
Lenovo Group Limited is one the famous multinational technology company that originated from China and the headquarters of Lenovo is also situated at the Beijing, China. Lenovo was establish in 1988 and became the China’s largest PC Company in 1996 by engaging primarily in the sale and manufacturing of personal computers, mobile telephone handsets, computer servers and printers. In terms of globalization, Lenovo has been using joint venture and acquisition to enter new market in another country across the world. (Www3.lenovo.com, 2016)
2.0 Critical Review of Internationalization Process of Lenovo
2.1 Identification of current internationalization Pattern
Year country they entered Strategy Citation
2005 IBM’s PC division in United State FDI (Lenovo, 2016)
2011 NEC from Japan Joint Venture (Lenovo, 2016)
Being transnational enables companies to focus more on research and development and allows them to improve products. This is due to the company’s worldwide presence and large profit margins. In 2007, the top 2000 transnational corporations invested about $460 billion into research and development, which corresponds to about 80% of global business expenditure (IRI). Along with this, the corporations contribute greatly to integrating technology. They often serve as examples to smaller, local companies who have not yet had the opportunity to upgrade to new technology.
Why did IKEA go international? Before starting to analyze IKEA’s internationalization, let’s consider on the question “why do companies go international?” Generally, companies go international for a lot of reasons, but the main ones are company growth and profit making as well.
EXECUTIVE SUMMARY M. PROCESS --> situational analysis - product life cycle Product life cycle involves four main stages which a product has to pass through such an introduction, growth maturity and decline. Numerous business innovate or invent inspired by someone’s great idea to produce a product which would be fresh in market, different compared to others and which also is innovative and perhaps superior to the one which available. Similarly with the most successful company Microsoft corporation’s product Microsoft office which as already touched to maturity stage according to its features: • Product features and packaging try to differentiate the product from those of competitors: Microsoft office is a brand that has extensively diversified
OB Team Project Team 5 HOW LG ELECTRONICS – R&D DEPARTMENT COPE WITH CHANGES IN VIETNAM SMARTPHONE MARKET I. General Information about LG In 1958, LG Electronics was founded as GoldStar. LG Electronics produced South Korea 's first radios, TVs, refrigerators, washing machines, and air conditioners. Gold Star was one of the LG groups with a brethren company, Lak-Hui (pronounced "Lucky") Chemical Industrial Corp. which is now LG Chem and LG Households.
Disruptive Innovation Xiaomi is often mentioned in the context of disruptive innovation. But does Xiaomi qualify? Figure 2.0 (Christensen ) https://www.interaction-design.org/literature/book/the-encyclopedia-of-human-computer-interaction-2nd-ed/disruptive-innovation The theory of disruptive innovation was introduced by Clayton Christensen, of Harvard Business School, in his book “The Innovator’s Dilemma” (1997).
Huawei's internationalization strategy can be roughly divided into 4 stages. Huawei's first overseas business came from 1996 Hong Kong in 2005, the same year to enter the CIS countries, the real large-scale overseas development from 2001 From the beginning, to 2006. In 2008, Asia Pacific, Europe, the Middle East, North Africa and the Commonwealth of Independent States have been completed, Latin America, South Africa, North America 8 Regional distribution, including Eastern Europe, the Commonwealth of Independent States, the Middle East, the Asia-Pacific and other places have entered the mainstream operators. Among British Telecom, France Telecom, Deutsche Telekom, KPN, Netherlands and other suppliers in the world's top telecom operators. See Figure 3-6.
In 1974, Delhaize took its first step of internationalization by entering the US market. He progressively acquired market shares in US and continued its internationalization process by entering Southeastern Europe in the early 1990s, and the Indonesian market in 1997. In this section we will try to understand the pressures that pushed Delhaize to internationalize. George Yip provides a framework to analyze the “globalization drivers” that are most likely to influence a company’s decisions to expend its business internationally. The four drivers of internationalization that he identified are: market drivers, cost drivers, government drivers and competitive drivers.
Competitive strategy is a suit of methods and action sequence deliberately planned and put into place by companies in the face of market competition. This seems to be a clear way of keeping their market shares, expanding sales and managing the product lines to deliver desired results. The corporate world often needs some sorts of solid strategies considering the trends of the market competition. Beyond the issues of quality and distribution, companies often need to plan ahead and protect their market share in the sale.
Motilal oswal securities Ltd The Motilal oswal ltd company was the parent company of the Motilal oswal securities ltd, it was the subsidiary company. Motilal Oswal Company was established by Motilal oswal and Raamdeo agarwal in 1987 and gets the membership from the BSE. It got it final certificate of registration approval in the year 2010 from the securities and exchange board of India regarding the setup and expansion of the business of mutual funds in the country. Motilal oswal securities ltd was incorporated in the year 1994 and its main business is stock broking and wealth management. Motilal Oswal Company has 99.95 % holdings previously which became 100 % holdings In Motilal securities ltd .It was one of the subsidiary company of the
The case chosen is IBM at the Crossroads, published by McGraw Hill Education. 3 key Issues and Recommendations A rather mind capturing case, talks about the growth story of IBM. The three key issues and future challenges in IBM’s way are: • Slow Reaction to Change: The past trends followed in IBM, show that it lacks responsiveness to change in market trends and revolutions.
Process Strategies The process strategies, for such a large manufacturing company, would need to be varied. The production process type would be determined by the product life cycle stage at that time (Thayer 2004).Product life cycles for items such as smartphones and tablets do not generally follow the standard life cycle stages. The maturity stage can be interrupted by discontinuation or irrelevance of a technology, which recommences the cycle (Giachetti & Marchi 2010). Incidentally, during the product life cycle of these items, a cyclic improvement of both process and product is required to stay in contact with market changes.
I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).
Uniqlo is a company from Japan; it could easily take advantage of this political factor. Vietnam – Japan Economic Partnership Agreement signed in 2008 has brought opportunities for two countries’ businesses and consumers to “access capital sources, modern technology, materials and goods” effectively (Viet Trade Promotion Agency, n.d) 2. Economic Economic bodies which constitute the external environment have certain influences on economic environment faced by organizations (Capon, 2009). • It is expected that, in 2016, among the six major countries in ASEAN group, Vietnam would grow fastest (The Economist, 2015). • Vietnam has been a member of WTO and a TTP trade agreement: these practices promote more competition and provide more mode of entry alternatives for new firms into Vietnam markets (KPMG, 2015).
INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses.
Transnational strategy Huawei has already passed the international strategy and multinational strategy. Now it is in the global strategy. At the moment, Huawei is entering into the field of transnational strategy through continuous reform. This will help Huawei to establish a brand image, integrate capital, and closely align its service and business models with the local market Specific requirements provide a solid foundation. Strategic alliances, cooperation and joint ventures Since 2007, Huawei has cooperated with these international companies in a variety of forms, ranging from simple product sales (NEC sells Huawei data communications through the OEM market in Japan).