The multinatinal corporation is consisit of many relative independent subsidiaries, all of each focus on certain determined markets. Multinational company approach advice on significant differences between national markets, such as when reduce the scale economies, when company for activiting the cost among the parent company. It is vital issue for company to choose the proper strategy for entering a foreign country. The main problem of managers are to confront with each market which has its own specific characteristics, and in according with each subsidiary of the company, to develope its strategy and designed its products. With regards to adopting a globalization strategy, company consider the world as a single market, development …show more content…
In this way, the authorized party does not need to pay a lot of money can rapidly expand the scale of operation, in a relatively short time get the higher benefit. Of the party was awarded the grant may be used for trademark, brand and technology and rapidly expanding influence, expand the market. Both sides to achieve mutual benefit and win-win …show more content…
Even lenovo win successively in the market, some scholars said, lenovo do again big, also just OEM mode of production, because there is no technical association. As a type of high-tech enterprises, the lack of core technology, is difficult to long-term survival.
Lenovo announced in global purchase international computer giant IBM's PC business, caused a great stir all over the world, because of IBM's PC business has years of losses, is a big burden. Lenovo's acquisition of behavior also paid a great price at the same time, in the form of cash and debt to IBM paid $1.75 billion, at the same time to transfer the IBM lenovo group 19% stake.
Through the acquisition, lenovo became the world's third largest computer maker, has also received the original IBM technology and market. These may be associate at great risk to make the main reason for the m&a