The Global Expansion Strategies of Chinese IT Companies: The Case of Lenovo

Liu, Ronghui (2005) The Global Expansion Strategies of Chinese IT Companies: The Case of Lenovo. [Dissertation (University of Nottingham only)] (Unpublished)

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This study explores Chinese IT firms' internationalisation processes and strategies based on a case study of Lenovo internationalisation process and recent acquisition of IBM PCD.

Through a review of existing theories of internationalisation, combined with a broad secondary research, and based on a understanding of the nature of IT industry and the characteristics of Chinese IT firms, this dissertation identifies the major challenges that Chinese firms like Lenovo who is undertaking global expansion strategy may face and gives some recommendations for Chinese companies pursuing a global strategy.

First, this study advocates that it is not necessary for Chinese firms to follow sequential and incremental process for their internationalisation on which traditional theories (e.g. stages theory) emphases. As what Lenovo has done, a 'jump strategy' may greatly accelerate the process of becoming real multinationals even though it may be very risky and challenging. Second, an appropriate foreign market entry mode should also be based on a comprehensive analysis of the firm's core competence which generates sustainable competitive advantages. The third recommendation points out the importance of improving brand recognition and reputations in global market. Finally, Chinese MNCs should constantly focus on developing existing capability of R&D which is the main weakness of Chinese companies.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 06 Jan 2006
Last Modified: 10 Jan 2018 20:43

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