Corperate strategy of TCL Multimedia Assignment

Corperate strategy of TCL Multimedia - Assignment Example This company was founded in 1982. It started its business as an audiotape manufacturing company. Its co- founders, Li Dongsheng gradually moved this company forward in the business of consumer electronics product. TCL got good reputation by the production of handsets for fixed-line telephones. This product established a trust in consumers. In the next decade TCL started producing audio equipment made in a joint venture. TCL also invested in the research and development (R&D) and focused on new product development and efficient production. TCL also developed a distribution and marketing network across China. The management was quite progressive and they were not satisfied with the performance of the state owned distributors and private marketing organizations. The dynamic and rapidly growing Chinese economy greatly owe its rapid growth to the Chinese companies. These companies not only come in contact with foreigners as a source of technology or assets, but also as a market for there own products. They are quite ambitious also, many companies aim to build global brands. The leading Chinese electrical appliance company Haier has 13 sites overseas, including factories. TCL is considered China's second biggest television maker has also invested in television manufacture outside China. Various model and methods have been evolved by scholars of management and corporate field for analyzing the external and internal environment of the company. It seems quite appropriate to use the PEST and SWOT models for analyzing TCL external and internal environment. 2.1 PEST Analysis PEST Analysis is used for analyzing macro environment of company. Four factors Political , Economic , Social , Technological is considered during this type of analysis. Assessment of the impact of all these factors plays an important role in evaluating the environment of a company. Political Factors World is virtually being ruled by multi-nationals. These multi-nationals are powerful enough to influence the decision making process of world's leading powers directly or indirectly. These multi-nationals are getting bigger and bigger by mergers and acquisitions. In such scenario Chinese companies are also playing very effective role. They are very successfully competing with European companies and US. In past it Chinese economy was considered closed and state owned economy. But now it is gradually opening and private companies are playing their role in the changed political atmosphere. TCL is one of such companies that is expanding and has been successful in getting good market share in TV market. Economic Factors TCL 's results of 2004-2005 show that its position in the market is continuously improving. TCL is a leading consumer electronics manufacturer within China. The company has begun to enter in international television markets by using majority-owned joint ventures techniques.