Morotola in china - Case Motorola in China Sulav 1 Assess...

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Case: Motorola in China - Sulav 1. Assess the viability of Motorola’s long-term strategy in China. Chinese economy is the world’s largest emerging economy and the preferred destination of foreign direct investment. Technological advancement and highly skilled labor cost is the major attraction for the multinational company to enter in the Chinese market. Motorola entered in china since the mid 1980’s. The company has invested nearly $35 billion in china for manufacturing, research and development operation. Motorola employees more than 10,000 local workers and produces more than $10 billion in parts and service locally which is greater advantage to the Chinese economy. The company is also able to maintain good relations with the Chinese Government. Further the company strides to be a good corporate citizen by involving actively in its corporate social responsibility. Initially Motorola adopted four point strategies in china i.e., investment/ technology transfer, management localization, local sourcing and joint-venture/co-operative projects. This four point strategy was focused in making Motorola the largest foreign investor in china. But realizing the competitive threat of other MNC’s entering into the Chinese market, Motorola replaces its four point strategy with its latest strategy i.e. 2+3+3 strategy for china. The 2 refers to building China into a world-wide manufacturing and R&D base. The first 3 refers to three new growth areas including semiconductor, broadband and digital trunking system. The second 3 refers to three $10 billion goals. Overall the core of new strategy is the same as that of four point strategy i.e. win-win strategy for
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This note was uploaded on 11/27/2010 for the course MANAGEMENT 222 taught by Professor Sulav during the Spring '10 term at Aims Community College.

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Morotola in china - Case Motorola in China Sulav 1 Assess...

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