Tcl Multimedia Case

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TCL Multimedia Case By crafting an innovative strategic approach for its operations, Li Dongsheng, founder and CEO of TCL Multimedia, successfully positioned the company as the leader of the television (TV) manufacturing industry in China. Originally involved with the production of audio equipment, TCL capitalized on past shortcomings with distribution outlets and “develop[ed] a national distribution system” to improve the focus on product promotion and inventory tracking (213). Strategic partnerships facilitated TCL’s migration into TV production, capitalizing on established distribution channels. Forming a joint venture with manufacturer Luk’s Industrial in 1996, TCL acquired the knowledge necessary to develop its television production business. Integration of the company’s business processes – specifically R&D, production, and marketing – catalyzed the growth and competitive prowess of TCL’s TV manufacturing business. These synergies led TCL to realize significant advantages in production efficiency compared to its major competitors (see: Appendix A, TCL Inventory Turnover vs. Competitors.) TCL’s success in the television arena drove its sales higher, leading to the acquisition of five additional distribution centers. These centers allowed TCL to build on its national reach, a strength neither its foreign nor domestic competitors could match. The overall strategic formula for its manufacturing processes gave TCL total control of its inventory – from production, to distribution, to promotion – enabling the company to adapt to industry challenges, such as increasing price competition. With a corporate structure focused on innovative learning, TCL was able to expand its manufacturing into other electronics, such as PCs and mobile phones. Additionally, TCL developed an expansive

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