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?
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.