TY - JOUR T1 - Global Corporations in China JF - The Journal of Private Equity SP - 59 LP - 63 DO - 10.3905/jpe.1999.319953 VL - 2 IS - 3 AU - Daozhi Yuan AU - Li Bai Y1 - 1999/05/31 UR - https://pm-research.com/content/2/3/59.abstract N2 - Trailblazers in China's information technology sector can teach many important lessons to subsequent entrepreneurial ventures. The article examines the case histories of IBM, Secom, Tontru, and ACBC in China. Careful analysis of the strategies and business models of each company can provide examples of how technology businesses advance in this giant region. IBM’s e-business strategy and network computing strength have helped to make it number one in the information technology (IT) industry, and its advanced research capability in areas such as voice recognition of the Chinese language has had a major impact on its image and acceptance in China. Japanese companies such as Secom impress Chinese customers with their top-notch service records, but their lack of innovation in marketing tactics has lead to a gradual erosion of market share by American rivals. Competition from Chinese manufacturers, experts at cloning Western technology, can not be ignored, particularly in the areas of mid- and low-end electronic products. Aid to these home-grown firms comes from the local market, as second-level (provincial) and third-level (county) distribution is solidly controlled by the Chinese companies. The authors suggest that global corporations entering this market study more of the politics and culture of the country, make necessary strategic adjustments, and sped up the localization of personnel. ER -