1984 Launches the New Technology
Developers Inc. funded by the CAS
- 1987 Chinese Character Card, first original
hardware
1989 NTD was renamed Legend Computer
Company
- 1990 Launched its own-brand PC in China
1996 Legend became the market share
leader in China
2003 Legend announces the birth of its new logo,
"Lenovo"
2005 Lenovo acquires IBM's Personal Computing
Chinese is gradually increasing.
Recent investment deals:
Investments on Halla Sigma Tower (33billion won), Finance Center (350 billion won), Asiana Building (50 billion won) by Singapore Investment Bureau
Investment by Hong Leong Group, real estate investment company, on Hilton Hotel ($ 220 million)
China Development Institute (CDIR) of Taiwan’s investment on Korean venture firms with
▪ To penetrate into DRAM market
▪ Aggressive Investment and enduring negative profit margin
▪ 64K DRAM , 256K DRAM, 4Mbit DRAM
▪ Investing in technology development for manufacturing efficiency
▪ Technological development increasing wafer size
→ more chip cutting available at the same time
Chinese entrants seeking? How close are they to achieving that advantage?
The Chinese entrants’ core strategy is to obtain competitive advantage by using Cost Leadership Strategy. Not only with the huge amount of resources they attracted from Chinese and foreign investors but with the vast size of investments from Chinese government, they could possibly sell their products at much lower prices
units to expanded
14 million units in 1995
A few firms such as Sony, Matsushita, Philips had succeeded in making their brand name (Sony, Panasonic, Philips respectively)
These firms had made up-front investments not only in advertising but
- After-sales service facilities
- Dealer networks to support the brand image
- To move from the low-end to the high-end
market segment