Corporate Growth Of Asiainfo Corp And Its Implications

Due to increasing competitive and dynamic business environment, the corporategrowth has attracted more attention now. The corporate growth process of Asiainfo isdescribed in this paper. Several students abroad founded Asiainfo Corporation inDallas, United States in 1993, adopted Americanized enterprise structure. Asiainfomoved major operations from the United States to China in 1995 and run business inTelecom industry which market capacity is huge and increase rapidly. Thecorporation financed by venture capital and stock issue, meanwhile, completedacquisition at right time. In addition, they timely changed business from networkintegration to software provider. Annual revenue of Asiainfo exceeded 100 millionsand employee number went up from several to more than one thousand.Corporate growth of Asiainfo fell far short of expectations after 2001, annual revenuedeclined year by year, few new products were developed in recent years. Asiainfodidn't emerge particular core competency or catch market opportunities while hevacillated so long about diversification or not. The corporate grow weakly on accountof abandoning the corporate basic beliefs and diversifying into disparate industriesthat can't utilize its resources and capabilities.High technology enterprises can extract experience from the case of Asiainfo, thegrowthing corporation ought to: (1) focus on different key problem at each corporatelife cycle stage;(2) keep harmonious with circumstance by choosing advantagedsocial and economic condition and adjusts itself to adapt external change;(3) buildand insist on corporate basic beliefs, meanwhile, identify and perform clear businessstrategies;(4) expand scale not only by internal development but also by acquisition;(5) establish management system and culture support innovation after the corporationarrive certain stage.