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IBM・s Strategic Choices in China: Compete and Cooperate?  
 
Product Ref: 16/584C Company: IBM

Product Type: Case Industry: Computer Hardware

Related Product(s): Teaching Note
IBM・s strategy in China was to go it alone. The company researched, produced, and distributed its own products. The Chinese government, however, viewed technology as a key factor for economic growth and national competitiveness: it wanted to promote technology transfer between foreign technology firms and domestic firms. As IBM・s business and ambitions in China grew, it would have to make a decision: would it compete and cooperate with local firms?
Functional Area : Economics & Business Policy
Strategy & General Management

Learning Objective: 1) To understand the strategic reasoning of the Chinese government in promoting technology transfer, and how this rationale and government policies change over time;
2) To assess the advantages and disadvantages of IBM・s strategy of integrating Chinese operations globally under a :one strategy; umbrella;
3) To use game theory to understand the potential payoffs, losses, and trade-offs for IBM in sharing core technology with Chinese firms.
Length: 16 pages Country: China (People's Rep. of)

Pub. Year: 2017 Level of Difficulty: 2
         
This product type is available in the following language(s):      English
         
Related Information: N/A
 
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