Analysis Of TCL's Internationalization Mode

Going out and going global almost is all the domestic enterprises' dream, and most enterprises are making efforts for realizing this dream. This essay introduces three routes being taken by Chinese firms toward internationalization and gives a pros &cons analysis to these three routes. In addition, the paper explains the drivers and facilitators for Chinese firms' internationalization.Among all the Chinese firms, TCL is paid more attention because of its particular internationalization route. Basically, there are two main markets: jumped-up market and Euramerican market; concerning the globalization process, two stages are: investment to set up factories and multinational acquisition.In the jumped-up market, it adopts the mode of investment to set up factories to establish TCL's brand reputation. TCL chooses entry model through a way that is "from easy to difficult" strategy. TCL chooses to enter into international market from the Southeast Asia countries that are similar to China. After its success in expanding Southeast market, TCL has greatly enhanced its overseas management ability and accumulate valuable internationalization experience, all of which are important for the further exploiting of international markets.When coming into 21st century, it accelerates its steps of globalization, begins to march on Euramerican market. In the midst of a global economy where open, multi-lateral corporate alliances are recognized as a process in achieving mutually beneficial effects to the companies concerned. TCL also exerts alliance strategy. TCL is quite active in international mergers and acquisitions in recent years. The biggest characteristic of TCL's internationalization road is to enlarge its scale by merger and acquisitions with Thomason, Schneider and Alcatel. The final goal of merger and acquisition is not to successfully carry it out but to achieve the maximize added value that merger and acquisition brings. M&A would also bring some opportunities and risks to the firms.Although some problems still exist in the process of internationalization, we cannot deny that TCL is an excellent example as going to the international market. Its advanced internationalization concepts and excellent management experience worth our carefully studying. At the same time, if we Chinese enterprises can find and avoid the problems existing in the process of its internationalization, our enterprises can grow rapidly and go further.