This case study provides material for understanding/studying the development of a large Chinese software enterprise.
As a result of Chinese ITO and BPO market in the face of re-structuring in 2012, Huawei invested in ChinaSoft in May and Vance info merged with HiSoft in August, both of which make ChinaSoft the third largest market-share owner. However, ChinaSoft has a dilemma in its strategic planning for the next three years. If it cannot break through the suppression from the first and the second placed companies, it may lag behind very soon. If it strives for the No. 2 position in market share, is organic growth or M&A strategy the right approach to adopt? Thus, ChinaSoft is now in need of strategic reform and restructuring. The case study analyzes the approaches that Chinese enterprises can adopt in order to sustain overall cost leadership strategies and avoid the related risks in the ITO and BPO industry.
Expected learning outcomes
This case study intends to encourage students to learn and use methodologies such as Porter's competitive strategy framework; Rugman and Collinson's theory, selecting and managing entry modes; four basic global strategies, by Hill and Jones.
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Zeng, V. (2013), "From strategy to numbers: how to penetrate overseas market for ChinaSoft, when Chinese ITO and BPO industry being re-structured in 2012", Emerald Emerging Markets Case Studies, Vol. 3 No. 1. https://doi.org/10.1108/EEMCS-12-2012-0203Download as .RIS
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