Emerging Market MNC Analysis
Individual Emerging Market MNC Analysis
Khalid Alharbi
Master of International Business, Emerging Markets INSTRUCTOR: Prof. William Newburry
February 2013
Contents
Note: one page for the introduction and companies’ overview, five pages to answer the questions, and seven pages for references and appendix.
1 Introduction
In an era of globalization and open markets, a lot of firms from emerging markets and other developing countries tapped into the international market. Some of these firms were very successful and some had to withdraw back to their country of origin. In both scenarios, those companies adopted to different business models, strategies and approaches, which were due to internal and external factors. The author will analyze two different MNC’s, TCL and Acer, which fall in the category of electronic firms from emerging markets, in order to come out with a better understanding of their globalizing process.
TCL Overview
TCL is one of the largest consumer electronics MNC in the world. It was founded by Mr. Li Dongsheng, the Current CEO, in 1981 in China. The company produces a wide diverse of electronic products such as TV, mobile phone and Internet access devices; in addition, it is one of the leading companies and was ranked sixth in the global TV market in terms of market share (TCL Annual Report, 2011), which is the main business for TCL. See figure 2.
The company has a worldwide presence; it has more than 40 sales offices, 18 R&D centers, and 20 manufacturing bases (TCL Introduction, 2011). Many critics attribute the company 's success to focusing on innovation as well as quality; as a result, TCL suppressed many leading companies such as Samsung and Sony.
Acer Overview
Originally known as Multitech, the Taiwanese company was founded by Stan Shih in 1976, which grew to become the fourth largest PC producer in the world and has a worldwide
Khalid Alharbi
Master of International Business, Emerging Markets INSTRUCTOR: Prof. William Newburry
February 2013
Contents
Note: one page for the introduction and companies’ overview, five pages to answer the questions, and seven pages for references and appendix.
1 Introduction
In an era of globalization and open markets, a lot of firms from emerging markets and other developing countries tapped into the international market. Some of these firms were very successful and some had to withdraw back to their country of origin. In both scenarios, those companies adopted to different business models, strategies and approaches, which were due to internal and external factors. The author will analyze two different MNC’s, TCL and Acer, which fall in the category of electronic firms from emerging markets, in order to come out with a better understanding of their globalizing process.
TCL Overview
TCL is one of the largest consumer electronics MNC in the world. It was founded by Mr. Li Dongsheng, the Current CEO, in 1981 in China. The company produces a wide diverse of electronic products such as TV, mobile phone and Internet access devices; in addition, it is one of the leading companies and was ranked sixth in the global TV market in terms of market share (TCL Annual Report, 2011), which is the main business for TCL. See figure 2.
The company has a worldwide presence; it has more than 40 sales offices, 18 R&D centers, and 20 manufacturing bases (TCL Introduction, 2011). Many critics attribute the company 's success to focusing on innovation as well as quality; as a result, TCL suppressed many leading companies such as Samsung and Sony.
Acer Overview
Originally known as Multitech, the Taiwanese company was founded by Stan Shih in 1976, which grew to become the fourth largest PC producer in the world and has a worldwide
References: "Acer Inc. History." History of Acer Inc. – FundingUniverse. Funding Universe, 2008. Web. 26 Feb. 2013. . "TCL Annual Report 2011." Investor Relations. TCL Multimedia, 2012. Web. 12 Feb. 2013. . "TCL Introduction." About TCL. TCL Multimedia, 2011. Web. 14 Feb. 2013. . Shengdong, Li. "Letter of Chairman." About TCL. TCL Multimedia, 2011. Web. 14 Feb. 2013. . Bell, Sandra. International Brand Management of Chinese Companies: Case Studies on the Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets. Heidelberg: Physica-Verlag, 2010. Print. "CHINA 'S TCL TURNS THE TV OFF AND LOOKS TO PCs." Computer Business Review. CBR, 02 June 1998. Web. 14 Feb. 2013. . "TCL Annual Report 2002." Investor Relations. TCL Multimedia, 2002. Web. 15 Feb. 2013. . Kurtenbach, Elaine. "China Turns Into TV Powerhouse." CBSNews. CBS Interactive, 11 Feb. 2009. Web. 20 Feb. 2013. . Yuan, Helen. "TCL Unit to Buy 45% Stake of Mobile-Phone Venture From Alcatel."Bloomberg.com. Bloomberg, 16 May 2005. Web. 20 Feb. 2013. . Han, Marie. "Samsung to Outsource Some Work to China 's TCL." Reuters.com. Ed. Anne Roantree. Reuters, 29 Apr. 2008. Web. 20 Feb. 2013. . Ringstrom, Anna. "IKEA Moves into Consumer Electronics with China Venture." Reuters. Ed. Bernard Orr. Thomson Reuters, 17 Apr. 2012. Web. 20 Feb. 2013. . "TCL Annual Report 2003." Multimedia.tcl.com. TCL Multimedia, 2003. Web. 15 Feb. 2013. . Kurtenbach, Elaine. "China Turns Into TV Powerhouse." CBSNews. CBS Interactive, 11 Feb. 2009. Web. 15 Feb. 2013. . "Acer Overview." Acer Group. Acer, 2013. Web. 25 Feb. 2013. . "Milestones & Innovations." Acer Group. Acer, 2013. Web. 25 Feb. 2013. . Ogg, Erica. "Europe Commission Stamps Acer 's Packard Bell Acquisition 'approved '" CNET News. CBS Interactive, 27 Feb. 2008. Web. 25 Feb. 2013. . Figure 3: TCL Presence in the International Markets (Sales Offices, R&D Centers, etc…). (Source: TCL Introduction, 2011) Figure 4: TCL brand value growing over years