Tlc Multimedia Case

1062 Words5 Pages
What were the other options that TCL and Thomson might have pursued? Do you think it was a good idea for TCL Multimedia to have gone international, or should they have focused on the very competitive market in China? What challenges does Li Dongsheng face in the execution of his global strategy in spring of 2005, in terms of production, marketing, finance, HR, governance, positioning of headquarters? Should TCL accelerate globalization or adopt a more regional strategy? Should they reinforce in China, attack other emerging countries, developed countries with their own brand or take the OEM route further? In our opinion Li wanted three things the most: TTE’s access to brands, intellectual property as well as access to Thomson’s sales network. TTE had to negotiate specific contracts for access to intellectual property owned by Thomson. We believe that a better option should have been to form an alliance, instead of a joint venture. This suggestion takes base in the lack of knowledge as well as in the big cultural difference that existed between among them. In the next paragraphs we’ll explain and expose another possibility that was indeed used in order to expand globally which is by acquisitions and/or mergers. In our opinion it was a good idea that TLC decided to go global, because the market was starting to saturate with local competitors, this knowledge lead them to the decision that in in order to survive, they needed to go global. Still Li Dongsheng faced some problems when executing their global strategy: • Thomson had been spending considerably more for components • Three of its Mexican factories had large capacity but were mostly idle • The TV main circuit board design that Thomson had adopted was both extremely expensive and required two years of lead time to manufacture compared to the industry standard • TTE’s limited R&D capabilities •

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