Can Legend go to America
... On the other hand, the Chinese market has also become more and more competitive, many Chinese enterprises are seeking their market aboard in order to keep their profit margin—such as Haier Group and Guang Dong Galanz have already have their international market in America, China’s biggest PC maker—Legend also just changed their logo to Lenovo and try to exploit their market in America where is the biggest computer market and with the best computing technology. Is Legend really ready for its trip to USA? Will Legend repeat its success again in America? In my assignment I am going to screen what the American computer market like, then analysis the reasons why Legend is successful in China and will all the reasons can help Legend market entry to America, finally I will give out my suggestions for Legend’s future. ... Such as the event “the September 11th” has scared many international businesses away from one of the most attractive markets---America. ... In this paper, I will jump over this stage because it seems like that Legend has decided to go America. ... In the following part, I will cite the case of Legend to implicate the importance of market screening and decide whether Legend should go to USA or not. Who is Legend?---Introduction of the company Legend, the China’s No. ... Begin with seed capital of $24,000, by the fiscal year ended March 31, 2002, Legend Groups revenues reached $2. ... In China, Legend controls about 30 percent of the computer market share since 2000, which is more than the other top four competitors combined (Tyler Marshall La, 2001). ... 4 billion revenues, Legend was the largest PC vendor in the Asia-Pacific region, excluding Japan. In the second quarter of 2002, sales volumes of Legend desktop computers ranked for the first time amongst the world’s top five PC vendors, with consumer PCs achieving global top three statuses. Legend began in the retail trade: buying and selling color TV sets, roller skates, just about anything. ... Legend remains China’s largest distributor of Hewlett-Packard PCs and printers, Toshiba notebook computers and Hayes modems. In 1990 Legend launched its own branded PC. But still wait for another four years until 1994; they first time start selling its own computers, branded with their own brand name—Legend. By 1996, Legend shared the same percentage market (7 %) as IBM did. Afterwards, Legend pulled other competitors away rapidly. ... why Legend still not ready to go aboard? IMPLICATION Before deciding whether Legend should go USA or not, we need have a look how Legend success in its home market Analysis of Legend’s success in domestic market The support from government • Research support Legend Group is a state-owned, privately run company, its state-owned parent company, Legend Holdings, still controls 57% of Legend Group, and this kind of close links helped Legend land contracts for government-funded programs, also behind its business, it has a powerful research body—Chinese Academy of Science’s institute of Computer Technology, a big government funded investment make it possible for Legend to produce good quality but still inexpensive PCs. This has given Legend a big market share. ... Legend also benefit in sales sources from the government, in china, more than 2000 universities are state-owned, as China’s No. 1 computer maker, Legend of course will be the first choice that universities and government consider. The huge purchase power gives Legend a very big market. For example, when the government announced a project to outfit every classroom in China with computers, Legend created its low-end PCs and a set of education applications. ... ) So, you won’t be surprise if a 7-year-old kid in China knows about Legend.