By the end of March, Ford will be Volvo brand and assets to 1.8 billion sale to China Geely Automobile. This is the auto industry so far the largest foreign acquisition. Lenovo bought IBM’s case first, people had to worry about, Volvo with safety as a luxury brand known for well-known, can be lucky in the acquisition, continue to be recognized by the Chinese and international markets it?

A rising China companies at low cost advantages and huge potential domestic market, to buy a Western brand, this is not surprising, but this acquisition will ultimately lead to the company’s business strategy must make major adjustments in is the greatest challenge. Geely founder Li Shufu has adopted a business strategy is to significantly reduce costs, increase production rapidly, and then dominate an industry. “Car, but is a four wheels and will move the box”, which is crazy by the media during the auspicious start of a verse mass.

Geely cars in the early to medium and small cities, targeting low-income people, the way clearly place an extra siege. But after 2007, due to a large number of competitors entered the market, profits diluted, but the city is difficult to bring new money to buy lucky brand interest. Volvo’s sales, it is auspicious long-awaited opportunity to turn around gorgeous.

China to become world-class power, China’s economic base – China’s enterprises must become a world-class enterprises, a strong enterprise in the world strong, as a Pathfinder for good, regardless of success or failure has a very important significance.

We can not avoid the fact that, due to the repeated expansion of production capacity, Chinese enterprises have already reached the bottleneck from quantity to quality. Thursday release of HSBC (HSBC) and Markit joint survey, the first 3 months of this year, China’s manufacturing activity – including the number of output and new employment and other indicators – the 2004 growth rate since the survey the highest level.

This record expansion, which shows a recovery in external demand and private consumption growth, China’s strong economic recovery in another signal. According to statistics, in February last year the country exports nearly half of the 1 times. But this growth momentum, brings the number of self-improvement? March 20, China International Trade Promotion Committee (CCPIT) released a 1000 survey conducted by companies, labor-intensive industries, exporters, only 3% of the lowest profit margins.

“Big” and “strong” does not exist between the causal relationship, “scale” does not necessarily “economy.” However, most Chinese entrepreneurs now face is that the bigger and stronger, but in many people of insight have been upgraded to a real powerful way for the active exploration.

Lenovo acquired IBM’s previous years, alone in the world due to the unprecedented attention, and looked to win back votes will have value. But the good time, although the acquisition eliminated IBM, but Dell and HP are immediately filled the high-end market, while in 2009 the huge loss of 220 million

U.S. dollars more Lenovo, Liu has also forced to seal knife, back at it.

Despite the failure in 2009, could be attributed to the sudden international financial crisis; big adjustment, the Lenovo main attack new markets, quickly turn around, hit the M & A new high since the IBM business. But the more critics point out that emerging markets, but is bringing home appliances under the rural market only. Lenovo tossing in a circle in the end, or from the international, high-end of the cloud drops and return to the country’s low-end market.

This may also participate in cutting-edge in many ceramic Gangster list of “A Talk on a tiger”, the lamented high-end brand of survival than the low-end brands a rationale for it hard. But it also illustrates the embarrassing situation of China’s brand: do not own the core technology, just stop at the level of assembly and price wars, there is no higher value-added and irreplaceable sense of spiritual satisfaction.

As general manager of Taiyuan House actually said Wang Ning, Shanxi, LD tile best known is because of consumer recognition of its brand value. However, the Yangcheng tile production of the same province, despite the low price in Shanxi Province is almost unknown.

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Category: Business Management
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