Essays on ZTE Corporation and Globalisation Case Study

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The paper "ZTE Corporation and Globalisation" is a good example of a business case study.   ZTE Corporation previously known as Zhongxing Telecommunication Equipment (ZTE) Company is a multinational corporation (MNC) in the systems and telecommunications sector headquartered in China. Having originated from an emerging market, ZTE has managed to become the fourth-largest manufacturer of mobile devices in the world. Android tablets and mobile phones comprise the largest percentage of devices manufactured by the company (Jiang 2005). Currently, the firm uses its ZTE brand to market its products. Moreover, ZTE is an original equipment manufacturer (OEM).

Globalisation has yielded both opportunities and threats to the success of the company on the international scene. This paper focuses on the opportunities and threats presented by globalisation for decision-makers. It also includes lessons that managers of international businesses should learn between home and host country differences in achieving success. Opportunities Presented by Globalisation ZTE’ s global growth strategy is evident in one of its vision statements that state that the MNC should become a truly local and global company by 2008. By so doing, the firm intended to reap 50% of its revenue from the international market.

The vision statement turned out to be a reality since the firm has emerged to be one of the largest manufacturers of mobile phones in the world. There are a number of opportunities presented by globalisation that have influenced decision making and are responsible for the massive success of the company in the international arena. They include the increased market for products, cost incentives, government incentives, and increased competitive forces (ZTE. com, 2016). Global Markets Globalisation subjected ZTE to global consumers thereby paving the way for the firm to generate additional revenue from foreign customers (Jiang 2005).

Just like other global vendors of telecom equipment, the continued success of ZTE depended on its ability to avail its products to the international market (ZTE. com, 2016). At the time of embracing globalisation, the world’ s top 10 mobile operators served the needs of the global market. There were approximately 900 customers of mobile wireless services that required a stable supply of mobile devices. The realisation acted as an incentive for the decision of ZTE to venture into the global market.

ZTE realised that the customers were evenly distributed all over the world. As a result, it was imperative for the decision-makers in the company to extend its operations as a vendor of telecom devices so as to meet the rising customer demand. The emergence of global markets due to globalisation implied that telecom vendors realised much of their revenue from global customers as compared to local ones. For instance, 90% of revenues generated by Nortel, Nokia and Ericsson originated from global markets that were outside their home countries. Increased revenue from foreign markets was as a result of the fact that foreign markets are usually larger than domestic markets.

As a result, firms that intended to attain higher revenues had to globalise their operations into the global market rather than focusing on home markets. The ability of ZTE to capitalise on global customers and lead countries turned out to be the main opportunities presented by globalisation with regard to global markets (Jiang 2005).



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