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Case Study

TCL-Thomson Electronics (A): Li dongsheng’s normandy

By Winter Nie and Abraham Hongze Lu

14 pages

May 2008

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Reference: IMD-3-1992

This case describes how Chinese businessman Li Dongsheng transforms a new, local television manufacturer (TCL) into an emerging global player. TCL became a majority stakeholder in a joint venture with the French company, Thomson. However, the integration did not produce the expected financial results. Technology, legislation and competition were simultaneously disrupting the industry. The newly established company experienced significant losses in both North America and Europe that threatened its survival. The focus is on the details of the joint venture, turnaround efforts and the tough decisions Dongsheng had to make regarding the future of the new entity. Participants are challenged to propose and evaluate various solutions, given the context of the case.

Learning Objective

To evaluate the companies involved, the motives behind acquisitions, the challenges facing television manufacturers, the impact of technology breakthroughs, the wisdom of following industrial trends, post-acquisition integration techniques, the impact of legislation and global competitive strategies.

Keywords

Globalization, Restructuring, Business Model, Television, Multimedia, Electronics

Settings

China
July 2006-2008

Type

Field Research

Available Languages

English

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