Case Study

Alcatel in China: Business as an adventure

15 pages
December 2003
Reference: IMD-3-1301

Take the world’s most challenging market. Concentrate almost all your previously dispersed assets–12 joint ventures and wholly owned businesses–into one basket. Move the management of all of your regional activities to this location. Place access to your worldwide intellectual property on the table and add $312 million for the portion of equity in a joint venture that gets you up to 50% plus one share, and then turn the venture’s structure and governance on its head in order to not only build the most technically and sales-aggressive telecom competitor in the China market, but one that also gives you access to Chinese brains and brawn in producing a global product for the global market. A recipe for revolution across the global market place, or yet another misguided investment in China’s elusive dream? Alcatel, France’s venerable telecom giant, is betting the former.

Keywords
Telecommunication, Intellectual Property
Settings
China
Alcatel-Lucent
2002
Type
Field Research
Copyright
© 2003
Available Languages
English
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Teaching note
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