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Essay / Research Paper Abstract
This 4 page paper looks at the case study provided by the student. Ultracom is a Chinese telecommunications equipment company that has been successful in its home country. However, they are facing difficulties when seeking to compete in the West. Strategies are suggested to increase the potential success of the company. The bibliography cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEultracom.doc
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Unformatted sample text from the term paper:
able to develop this to sell at a discounted rate, roughly 30% below the competitors prices. The firm is likely to be benefiting from comparative advantage due to the lower
production costs in their home country, such as labour. China is also a country where there are barriers for international firms and where there is the potential benefit to the
firm to benefit from nationalist feeling that benefits Chinese companies. However, when seeking to compete abroad the firm has had disappointing results. The market in the west is relativity
concentrated; furthermore there are only a limited number of potential customers due to the nature of the industry. This can create significant barriers to entry. Where there are only a
limited number of players many markets is likely to be to increase familiarity and there is a greater potential for long-term relationships in the industry. Where these types of long-term
relationships exist and companies to gain entrance, although it is not impossible. UltraCom is an outsider trying to get into this large, but difficult market. As a new firm the
organization does not have the same brand history, and may also be suffering the general reputation and stereotypes of many Chinese IT companies. The Chinese environment is one where patent
and intellectual protection law is weakly enforced; there are a large amount of patent breaches which are taking place within the country. Where a company does not have a particularly
strong reputation it is likely to associations is country of origin. The firm is suffering from accusations alleging that they are a patent violator. This may relate to the investment
which has been made in research and development, and concerns that technology from competitors has simply been copied. However, it is highly likely that if there were any patents breaches
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