Tcl Group Co., Ltd. Strategic Change

Because of the rapid breakthrough in technology, easy to get information and large sum of increasing foreign investment after China's entry into WTO, many Chinese companies were pushed to a position where they should face to furious competition and shortened product lifecycle. A lot of merits they owned like low manufacture cost, scale economy and good image are gradually lost. Many Chinese companies in electronic industry who earn money mostly through selling products at very low price and with great large quantity have suffered heavily and the profits are becoming more and more slim. Confronting the huge threats, these companies have not only to increase investment in R&D but also to cut down costs further. It has been becoming more and more important for these companies to know how to run and manage a company with effective managerial rules and regulations. Organizational reform and change are necessary and urgent. Companies would be eliminated during the fierce competition without keeping necessary carefulness and cautiousness. Many companies have paid a great deal for some ineffective measures which they made.This paper attempts to explore the reasons why TCL succeeded in the past time and what made TCL go downhill in the recent two years through detailed analyses to its strategies and what it has done facing the fierce competition. The author puts forward her own opinions and suggestions about TCL's prospects and what specific steps TCL should take in the near future. Many Chinese companies have been facing the same challenges like TCL. To find a way for them to get rid of low technology content products which make profit only by selling labor and raw materials at lower price. Whether Chinese enterprises could become stronger in the international context or not is an issue of great importance to our whole nation, an issue for every Chinese people to think about.