IBM’s Strategic Choices in China: Compete and Cooperate?

Case Solution

Zhigang Tao, Erik Tollefson
University of Hong Kong ()

IBM’s strategy in China was to go it alone. The company researches, manufactures and sells its own products. However, the Chinese government viewed technology as a key factor for economic growth and domestic competitiveness: it wanted to encourage technology transfer between foreign technology companies and domestic companies. As IBM’s business and ambitions grew in China, it had a choice to make: would it compete and cooperate with local companies?

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