SlideShare a Scribd company logo
Entrepreneurship Management
Failed business venture-
TCL & TTE
Presented by- Antara Paul
Drishti Saraswat
Shreeti Mishra
TCL CORPORATION
• Publicly traded, Chinese electronics manufacturer
headquartered in Huizhou, Guangdong Province, southern
China
• The three listed companies of the TCL groups are :-
 TCL Corporation (SZ.000100) on the Shenzhen Stock Exchange
 TCL Multimedia Technology Holdings, Ltd. (HK.1070)
 TCL Communication Technology Holdings, Ltd. (HK.2618) on
the Hong Kong Exchange
TCL CORPORATION …
• TCL's corporate slogan is "The Creative Life"
• Founded in 1981 and Incorporated in 1985 as TCL
Telecommunication Equipment Co Ltd
• it started to manufacture consumer electronics for the Chinese
market during the eighties, and began to sell overseas in the
2000s
TCL CORPORATION …
• Though a state‐owned enterprise, it was set up as a joint
venture with several Hong Kong investors. Today it sells
products throughout the world under four brand names
THOMSON SA
• Technicolor SA, formerly Thomson SA (NYSE: TCH , Euronext:
TCH) and Thomson Multimedia
• French international provider of solutions for the creation,
management, post‐production, delivery and access of video,
for the Communication, Media and Entertainment industries
• Technicolor’s headquarters are located in Issy les Moulineaux,
near Paris
THOMSON SA …
• Other main office locations :-
 Rennes (France)
 Indianapolis (Indiana, USA)
 Burbank (California, USA)
 Princeton (New Jersey, USA)
 London (England, UK)
 Rome (Italy)
 Madrid(Spain)
 Hilversum (Netherlands),
 Bangalore (India)
 Beijing (China)
THE CLIENTS INCLUDE
• Studios
• Broadcasters
• cinema/television production and
• post‐production companies
• network operators (telcos, broadband, satellite and cable
operators)
• a range of professional users of videos
JOINT VENTURE
• In late 2003, China based TCL Corporation (TCL) and
France‐based Thomson SA formed a joint venture under the
name TCL‐Thomson Electronics Corporation (TTE)
• TTE's core product was television sets which were sold
globally
• It also produced computers which were sold only in China
JOINT VENTURE …
• The case discusses the rationale for the formation of this joint
venture. It highlights the problems faced by TTE and details
the reasons why it failed to achieve its objectives
ABOUT THE VENTURE
• March 2006, China based TCL Multimedia Technology Holdings
Limited (TMTHL) had posted a loss before tax of HK$ 98 million
on the total sales of HK$ 8 billion
• TMTHL's core product was television, which accounted for
nearly 88% of its revenues. It also manufactured computers and
audio‐video products
• TMTHL's television business was operated under its
wholly‐owned subsidiary, TCL‐Thomson Electronics Corporation
(TTE)
ABOUT THE VENTURE…
• TTE was the world's largest manufacturer of
television sets in terms of volumes
• TTE sold television sets under the brand names
TCL (in China), Thomson (in Europe) and RCA (in
Asia)
• TTE attributed the loss primarily to falling market
demand for televisions, greater competition from
other brands and a substantial fall in prices of
high‐end television sets in the US and Europe.
ABOUT THE VENTURE…
• The company was not strong in the liquid crystal displays
(LCD) segment and this affected its sales particularly hard
in Europe, where the LCD television market was growing
rapidly
• Though TMTHL tried to improve its flat television business
in 2005 by investing more money, it failed to turn around
this business
ABOUT THE VENTURE…
• The combined loss for North American and European markets in
the first quarter of 2006 was HK$ 210 million on revenues of
HK$ 3.3 billion while the loss was HK$ 779 million on revenues
of HK$ 14.5 billion in the financial year 2005
• TMTHL expected that TTE would break even in 2005 as it was
planning to promote its flat‐panel televisions aggressively.
• TCL's Chairman Dongsheng Li (Li) expressed confidence that TTE
would turn things around by aggressively promoting its flat
televisions in Europe and US
ABOUT THE VENTURE…
• He said, "Flat panel TV is gaining popularity in major TV markets.
Being the leader in the cathode ray tube (CRT) TV segment, TTE
would capitalize on its advantages in the CRT TV segment and try its
utmost best to improve its position in flat panel TV market.“
• However, analysts felt that the path would not be easy for TTE
which was still investing heavily in popularizing the RCA brand and
was in direct competition with big players like Sony and Samsung
RATIONALE FOR THE JOINT VENTURE
• In 1999, Li announced TCL's aim: "Our goal is to create a
world‐class Chinese enterprise"
• TCL's first step in this direction was to enter the US and the EU, two
of the world's premier markets
• TCL had to rely on acquiring companies operating in the EU to
avoid the heavy import tariffs due to the protectionist measures
and heavy anti‐dumping duties levied on Chinese television
manufacturers
RATIONALE FOR THE JOINT VENTURE…
• It realised that it was easy to expand using an already existing
brand rather than introducing and establishing a new brand,
especially in markets like the US and the EU
• Explaining this strategy, Vincent Yan (Yan), CFO of TTE, said,
"It's not just realistic to build a new brand in a mature market
like North America. You just don't have the kind of profit
margin for that..."
TTE’s PLAN
• After mutual consultations, TCL and Thomson established TTE
directorate and appointed Li and Dehelly as Chairman and
Vice‐chairman respectively
• On July 28, 2004, production started under TTE
• TTE planned to turn around its North American and European
operations by the end of 2005 and increase the worldwide sales
to 30 million units by 2006
TTE’s PLAN…
• TCL aimed to be among the world's 500 largest companies by
2010 with annual revenues of around US$ 18 billion
• Some industry experts commented that TCL would have to
increase its sales significantly, if the company was to reach its
goal which was difficult as there were many competitors with
larger market shares
TTE RUNS INTO TROUBLE
• Other than focusing on TTE, in August 2004, TCL's TCTH formed a
joint venture with the loss‐making mobile phone division of the
Paris‐based Alcatel SA
• Alcatel posted a net loss of 74.4 million euros in the fiscal 2003
and 34.8 million euros in the first half of 2004. The joint venture
was called TCL Alcatel Mobile Phones Limited (TAMP).
TTE RUNS INTO TROUBLE …
• TCL paid 55 million euros to get a 55% equity stake in the joint
venture while Alcatel contributed cash and its loss making mobile
phone business worth 45 million euros for a 45% equity stake
• some analysts praised TCL for taking this bold step, others feared
that TCL was overburdening itself as it already had TTE which
required considerable attention
• They felt that TAMP would further affect the company's overall
profitability if not revived quickly.
THE ROAD AHEAD
• Analysts said that TTE was one of the examples that Chinese
enterprises were not well‐equipped to manage joint ventures.
Some analysts feared the 'desperation' of some Chinese
companies like TCL that were raring to go global without proper
evaluation of partners
• Industry analysts said that TCL expected the purchase of Schneider
and the joint venture with Thomson to help in expanding its
business in the West
THE ROAD AHEAD…
• In regard to TTE's attempts to shake off the losses in Europe
and the US as soon as possible, some analysts said that
though the company was taking steps to reduce losses by
focusing on the fast growing flat television segment, the low
margins in this segment were affecting its revenues. Others
felt that it would take at least five years for TCL to get global
recognition like Sony or Samsung.
SWOT ANALYSIS
STRENGTH
• Availability of cheap and skilled man power
• Part of a matured industry
• Home to R&D and design centers to global
major
• Good after sales service and wide
distribution network
WEAKNESS (REASONS FOR ITS DOWNFALL)
• Error in Sales and Marketing
• Not well‐equipped to manage joint ventures
• Go global without proper evaluation of partners
• Old‐fashioned and unwieldy
• High Competition
WEAKNESS….
• Lack of Innovative Customer Preferences
• Lack of proper Advertising
• Lack of Communication
• Brand has limited market share compared to
market leaders
• Impact of Home Country
OPPORTUNITIES
• Write Down Your Business Plan
• Focus on your Branding
• Create a Web Presence
• Create an Advertising Strategy
• Create an Advertising Strategy
OPPORTUNITIES….
• Publicity as Key
• Measure, Analyze and Decide
THREATS
• falling market demand for televisions
• greater competition from other brands
• fall in prices of high‐end television sets in the US and
Europe
• not strong enough in the liquid crystal displays (LCD)
segment
• Rising manpower and infrastructure cost
SUGGESTIONS
• Correct Sales and Marketing Policy
• Well equipped to manage joint venture
• Latest fashion and Market
• Sustain Competition
• Innovation
SUGGESTIONS….
• Customer Preferences
• Management Culture
• Impact of home country could have been
reversed
• Better advertising
• Better communication
CONCLUSION
TCL and Thomson SA ended up as a failed venture,
due to the following major points-
• greater competition from other brands
• fall in prices of high‐end TV sets in US and Europe
• Weak liquid crystal displays (LCD) technology
• Failure of entrepreneurs to analyze the actual
demand of market
THANK YOU

More Related Content

What's hot

toyota
toyotatoyota
toyota
Nakib Ahmed
 
E bay Thrives in Global Market
E bay Thrives in Global MarketE bay Thrives in Global Market
E bay Thrives in Global Market
Abhay Katiyar
 
Toyota company
Toyota companyToyota company
Toyota company
NailaJahan
 
Volvo presentation
Volvo presentationVolvo presentation
Volvo presentation
ameya wadke
 
Threats in a business environment: The rise and fall of Nokia
Threats in a business environment: The rise and fall of NokiaThreats in a business environment: The rise and fall of Nokia
Threats in a business environment: The rise and fall of Nokia
Floyd Fernandes
 
STP(segmentation ,targeting& positioning ) of Apple .
STP(segmentation ,targeting& positioning  ) of Apple .STP(segmentation ,targeting& positioning  ) of Apple .
STP(segmentation ,targeting& positioning ) of Apple .
Deepanshu Anand
 
Lego case
Lego caseLego case
Lego case
Bảo Bảo
 
Pioneer Cement Limited Report Presentation
Pioneer Cement Limited Report PresentationPioneer Cement Limited Report Presentation
Pioneer Cement Limited Report Presentation
MUHAMMAD AYAZ IQBAL
 
Lg electronics global strategy in emerging markets
Lg electronics global strategy in emerging marketsLg electronics global strategy in emerging markets
Lg electronics global strategy in emerging markets
Saurabh Arora
 
Ikea Global Marketing
Ikea Global Marketing Ikea Global Marketing
Ikea Global Marketing
Mita Angela M. Dimalanta
 
Case study benetton(a)
Case study benetton(a)Case study benetton(a)
Case study benetton(a)
Archal Shah
 
Singapore Air Final
Singapore Air FinalSingapore Air Final
Singapore Air Final
beastrid
 
Wal-Mart Case Study
Wal-Mart Case StudyWal-Mart Case Study
Wal-Mart Case Study
Kevin Simpson
 
Carslberg Case Study Presentation
Carslberg Case Study PresentationCarslberg Case Study Presentation
Carslberg Case Study Presentation
Andreas Georgiou
 
Joint venture - Case study
Joint venture - Case studyJoint venture - Case study
Joint venture - Case study
Kiran Hanjar
 
Renault logan case study
Renault logan case studyRenault logan case study
Renault logan case study
Manas Tripathy
 
IKEA STRATEGIC MANAGEMENT
IKEA STRATEGIC MANAGEMENTIKEA STRATEGIC MANAGEMENT
IKEA STRATEGIC MANAGEMENT
Rawan Nadeem
 
Maruti Udyog
Maruti UdyogMaruti Udyog
Maruti Udyog
damini0112
 
International business strategy_Home replication strategy
International business strategy_Home replication strategyInternational business strategy_Home replication strategy
International business strategy_Home replication strategy
Phương Tuyến Hoàng
 
strategic management
strategic management  strategic management
strategic management
Agha Jan
 

What's hot (20)

toyota
toyotatoyota
toyota
 
E bay Thrives in Global Market
E bay Thrives in Global MarketE bay Thrives in Global Market
E bay Thrives in Global Market
 
Toyota company
Toyota companyToyota company
Toyota company
 
Volvo presentation
Volvo presentationVolvo presentation
Volvo presentation
 
Threats in a business environment: The rise and fall of Nokia
Threats in a business environment: The rise and fall of NokiaThreats in a business environment: The rise and fall of Nokia
Threats in a business environment: The rise and fall of Nokia
 
STP(segmentation ,targeting& positioning ) of Apple .
STP(segmentation ,targeting& positioning  ) of Apple .STP(segmentation ,targeting& positioning  ) of Apple .
STP(segmentation ,targeting& positioning ) of Apple .
 
Lego case
Lego caseLego case
Lego case
 
Pioneer Cement Limited Report Presentation
Pioneer Cement Limited Report PresentationPioneer Cement Limited Report Presentation
Pioneer Cement Limited Report Presentation
 
Lg electronics global strategy in emerging markets
Lg electronics global strategy in emerging marketsLg electronics global strategy in emerging markets
Lg electronics global strategy in emerging markets
 
Ikea Global Marketing
Ikea Global Marketing Ikea Global Marketing
Ikea Global Marketing
 
Case study benetton(a)
Case study benetton(a)Case study benetton(a)
Case study benetton(a)
 
Singapore Air Final
Singapore Air FinalSingapore Air Final
Singapore Air Final
 
Wal-Mart Case Study
Wal-Mart Case StudyWal-Mart Case Study
Wal-Mart Case Study
 
Carslberg Case Study Presentation
Carslberg Case Study PresentationCarslberg Case Study Presentation
Carslberg Case Study Presentation
 
Joint venture - Case study
Joint venture - Case studyJoint venture - Case study
Joint venture - Case study
 
Renault logan case study
Renault logan case studyRenault logan case study
Renault logan case study
 
IKEA STRATEGIC MANAGEMENT
IKEA STRATEGIC MANAGEMENTIKEA STRATEGIC MANAGEMENT
IKEA STRATEGIC MANAGEMENT
 
Maruti Udyog
Maruti UdyogMaruti Udyog
Maruti Udyog
 
International business strategy_Home replication strategy
International business strategy_Home replication strategyInternational business strategy_Home replication strategy
International business strategy_Home replication strategy
 
strategic management
strategic management  strategic management
strategic management
 

Viewers also liked

Joint Venture- Success & Failure
Joint Venture- Success & FailureJoint Venture- Success & Failure
Joint Venture- Success & Failure
Onkar Satam
 
Mahindra renault Joint Venture failure
Mahindra renault Joint Venture failureMahindra renault Joint Venture failure
Mahindra renault Joint Venture failure
DINESH GERA
 
Technology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcgTechnology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcg
Vladyslav Solodovnyk
 
Thomson Reuters Eikon
Thomson Reuters EikonThomson Reuters Eikon
Thomson Reuters Eikon
Michel El Maalouly
 
TVI Pacific Corporate Presentation
TVI Pacific Corporate PresentationTVI Pacific Corporate Presentation
TVI Pacific Corporate Presentation
TVI_Pacific
 
Invest in philippines
Invest in philippinesInvest in philippines
Invest in philippines
janekaren
 
Philippines
PhilippinesPhilippines
Philippines
katie.dudley
 
Josiah Larkin | Emerging Startups
Josiah Larkin | Emerging StartupsJosiah Larkin | Emerging Startups
Josiah Larkin | Emerging Startups
Josiah Larkin
 
Volvo Eicher Joint Venture
Volvo Eicher Joint VentureVolvo Eicher Joint Venture
Volvo Eicher Joint Venture
Anant Lodha
 
Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)
Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)
Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)
Spark Summit
 
Con project on eicher motors by vinay khatri.doc main main
Con project on eicher motors  by vinay khatri.doc  main mainCon project on eicher motors  by vinay khatri.doc  main main
Con project on eicher motors by vinay khatri.doc main main
Vinay Jeengar
 
VOLVO a fortune 500 company
VOLVO a fortune 500 companyVOLVO a fortune 500 company
VOLVO a fortune 500 company
Suryadev Maity
 
2009 BCG Value Creators Report
2009 BCG Value Creators Report2009 BCG Value Creators Report
2009 BCG Value Creators Report
tkang87
 
The deal vault case profile fuji xerox
The deal vault case profile   fuji xeroxThe deal vault case profile   fuji xerox
The deal vault case profile fuji xerox
Carlos Perry
 
India Philippines, a relationship of opportunities
India Philippines, a relationship of opportunitiesIndia Philippines, a relationship of opportunities
India Philippines, a relationship of opportunities
Raju Mandhyan
 
Executive Brief on 11,000 hectare property in Bukidnon, Philippines
Executive Brief on 11,000 hectare property in Bukidnon, Philippines Executive Brief on 11,000 hectare property in Bukidnon, Philippines
Executive Brief on 11,000 hectare property in Bukidnon, Philippines
Marte L. Aragon
 
Eicher Motors
Eicher MotorsEicher Motors
Eicher Motors
Argha Ray
 
Corporate income tax.feb.2011
Corporate income tax.feb.2011Corporate income tax.feb.2011
Corporate income tax.feb.2011
Phil Taxation
 
Case Study: Thomson Reuters
Case Study: Thomson ReutersCase Study: Thomson Reuters
Case Study: Thomson Reuters
ForgeRock
 
Successful Joint Ventures
Successful Joint VenturesSuccessful Joint Ventures
Successful Joint Ventures
Arun Kottolli
 

Viewers also liked (20)

Joint Venture- Success & Failure
Joint Venture- Success & FailureJoint Venture- Success & Failure
Joint Venture- Success & Failure
 
Mahindra renault Joint Venture failure
Mahindra renault Joint Venture failureMahindra renault Joint Venture failure
Mahindra renault Joint Venture failure
 
Technology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcgTechnology media and telecommunications 2010 bcg
Technology media and telecommunications 2010 bcg
 
Thomson Reuters Eikon
Thomson Reuters EikonThomson Reuters Eikon
Thomson Reuters Eikon
 
TVI Pacific Corporate Presentation
TVI Pacific Corporate PresentationTVI Pacific Corporate Presentation
TVI Pacific Corporate Presentation
 
Invest in philippines
Invest in philippinesInvest in philippines
Invest in philippines
 
Philippines
PhilippinesPhilippines
Philippines
 
Josiah Larkin | Emerging Startups
Josiah Larkin | Emerging StartupsJosiah Larkin | Emerging Startups
Josiah Larkin | Emerging Startups
 
Volvo Eicher Joint Venture
Volvo Eicher Joint VentureVolvo Eicher Joint Venture
Volvo Eicher Joint Venture
 
Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)
Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)
Flyby: Improved Dense Matrix Multiplication-(Tom Vacek, Thomson Reuters)
 
Con project on eicher motors by vinay khatri.doc main main
Con project on eicher motors  by vinay khatri.doc  main mainCon project on eicher motors  by vinay khatri.doc  main main
Con project on eicher motors by vinay khatri.doc main main
 
VOLVO a fortune 500 company
VOLVO a fortune 500 companyVOLVO a fortune 500 company
VOLVO a fortune 500 company
 
2009 BCG Value Creators Report
2009 BCG Value Creators Report2009 BCG Value Creators Report
2009 BCG Value Creators Report
 
The deal vault case profile fuji xerox
The deal vault case profile   fuji xeroxThe deal vault case profile   fuji xerox
The deal vault case profile fuji xerox
 
India Philippines, a relationship of opportunities
India Philippines, a relationship of opportunitiesIndia Philippines, a relationship of opportunities
India Philippines, a relationship of opportunities
 
Executive Brief on 11,000 hectare property in Bukidnon, Philippines
Executive Brief on 11,000 hectare property in Bukidnon, Philippines Executive Brief on 11,000 hectare property in Bukidnon, Philippines
Executive Brief on 11,000 hectare property in Bukidnon, Philippines
 
Eicher Motors
Eicher MotorsEicher Motors
Eicher Motors
 
Corporate income tax.feb.2011
Corporate income tax.feb.2011Corporate income tax.feb.2011
Corporate income tax.feb.2011
 
Case Study: Thomson Reuters
Case Study: Thomson ReutersCase Study: Thomson Reuters
Case Study: Thomson Reuters
 
Successful Joint Ventures
Successful Joint VenturesSuccessful Joint Ventures
Successful Joint Ventures
 

Similar to Failed business venture- TCL and Thomson

TCL global strategy at one of Chinas largest consumer e.pdf
TCL   global strategy at one of Chinas largest consumer e.pdfTCL   global strategy at one of Chinas largest consumer e.pdf
TCL global strategy at one of Chinas largest consumer e.pdf
acsmadurai
 
TCL De-internalization
TCL De-internalizationTCL De-internalization
TCL De-internalization
YINING ZHOU
 
18245513 videocon-television-project-report
18245513 videocon-television-project-report18245513 videocon-television-project-report
18245513 videocon-television-project-report
123pallo
 
TME Consulting External Introduction 2009
TME Consulting External Introduction 2009TME Consulting External Introduction 2009
TME Consulting External Introduction 2009
Miguel Cavero
 
Thompson Transformation
Thompson TransformationThompson Transformation
Thompson Transformation
Shwet Kashyap
 
Adaptation in the Shadow of Target Operating Model
Adaptation in the Shadow of Target Operating ModelAdaptation in the Shadow of Target Operating Model
Adaptation in the Shadow of Target Operating Model
Nathan Allchin
 
M ns enterprises
M ns enterprisesM ns enterprises
M ns enterprises
Pimsat University
 
Konka
KonkaKonka
Marketing case of sansui
Marketing case of sansuiMarketing case of sansui
Marketing case of sansui
Duy Nguyen
 
Unit 3 drivers and obstacles mi
Unit 3 drivers and obstacles miUnit 3 drivers and obstacles mi
Unit 3 drivers and obstacles mi
juanconderevuelta2
 
Global Business.ppt
Global Business.pptGlobal Business.ppt
Global Business.ppt
ssuser4d89b4
 
Revitalizing philips final (1) (1)
Revitalizing philips final (1) (1)Revitalizing philips final (1) (1)
Revitalizing philips final (1) (1)
Sanya Nakra
 
Arcelik Turkey
Arcelik TurkeyArcelik Turkey
Arcelik Turkey
kelly kusmulyono
 
Beko L C D Sunum
Beko  L C D  SunumBeko  L C D  Sunum
Beko L C D Sunum
guest9c16845
 
G322 film industry revision1
G322 film industry revision1G322 film industry revision1
G322 film industry revision1
Great Baddow High School Media
 
Samsung
SamsungSamsung
Samsung
mini0209
 
Film Industry
Film IndustryFilm Industry
Film Industry
abbyrevell
 
G322 Film Industry Revision
G322 Film Industry RevisionG322 Film Industry Revision
G322 Film Industry Revision
egregson
 
Strategic implications on the electronics industry with respect to televisions
Strategic implications on the electronics industry with respect to televisionsStrategic implications on the electronics industry with respect to televisions
Strategic implications on the electronics industry with respect to televisions
AdityaDhandhania1
 
Mark Smith resume
Mark Smith resumeMark Smith resume
Mark Smith resume
mark smith
 

Similar to Failed business venture- TCL and Thomson (20)

TCL global strategy at one of Chinas largest consumer e.pdf
TCL   global strategy at one of Chinas largest consumer e.pdfTCL   global strategy at one of Chinas largest consumer e.pdf
TCL global strategy at one of Chinas largest consumer e.pdf
 
TCL De-internalization
TCL De-internalizationTCL De-internalization
TCL De-internalization
 
18245513 videocon-television-project-report
18245513 videocon-television-project-report18245513 videocon-television-project-report
18245513 videocon-television-project-report
 
TME Consulting External Introduction 2009
TME Consulting External Introduction 2009TME Consulting External Introduction 2009
TME Consulting External Introduction 2009
 
Thompson Transformation
Thompson TransformationThompson Transformation
Thompson Transformation
 
Adaptation in the Shadow of Target Operating Model
Adaptation in the Shadow of Target Operating ModelAdaptation in the Shadow of Target Operating Model
Adaptation in the Shadow of Target Operating Model
 
M ns enterprises
M ns enterprisesM ns enterprises
M ns enterprises
 
Konka
KonkaKonka
Konka
 
Marketing case of sansui
Marketing case of sansuiMarketing case of sansui
Marketing case of sansui
 
Unit 3 drivers and obstacles mi
Unit 3 drivers and obstacles miUnit 3 drivers and obstacles mi
Unit 3 drivers and obstacles mi
 
Global Business.ppt
Global Business.pptGlobal Business.ppt
Global Business.ppt
 
Revitalizing philips final (1) (1)
Revitalizing philips final (1) (1)Revitalizing philips final (1) (1)
Revitalizing philips final (1) (1)
 
Arcelik Turkey
Arcelik TurkeyArcelik Turkey
Arcelik Turkey
 
Beko L C D Sunum
Beko  L C D  SunumBeko  L C D  Sunum
Beko L C D Sunum
 
G322 film industry revision1
G322 film industry revision1G322 film industry revision1
G322 film industry revision1
 
Samsung
SamsungSamsung
Samsung
 
Film Industry
Film IndustryFilm Industry
Film Industry
 
G322 Film Industry Revision
G322 Film Industry RevisionG322 Film Industry Revision
G322 Film Industry Revision
 
Strategic implications on the electronics industry with respect to televisions
Strategic implications on the electronics industry with respect to televisionsStrategic implications on the electronics industry with respect to televisions
Strategic implications on the electronics industry with respect to televisions
 
Mark Smith resume
Mark Smith resumeMark Smith resume
Mark Smith resume
 

Recently uploaded

High-Quality IPTV Monthly Subscription for $15
High-Quality IPTV Monthly Subscription for $15High-Quality IPTV Monthly Subscription for $15
High-Quality IPTV Monthly Subscription for $15
advik4387
 
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium PresentationKirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip
 
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
taqyea
 
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
ISONIKELtd
 
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Adani case
 
IMG_20240615_091110.pdf dpboss guessing
IMG_20240615_091110.pdf dpboss  guessingIMG_20240615_091110.pdf dpboss  guessing
TriStar Gold Corporate Presentation - June 2024
TriStar Gold Corporate Presentation - June 2024TriStar Gold Corporate Presentation - June 2024
TriStar Gold Corporate Presentation - June 2024
Adnet Communications
 
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
valvereliz227
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
BBPMedia1
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
dpbossdpboss69
 
The Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac SignThe Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac Sign
my Pandit
 
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper PresentationKirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fixKalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
satta Matta matka 143 Kalyan chart jodi 6366249026
 
Efficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web ApplicationsEfficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web Applications
Harwinder Singh
 
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
Cambridge Product Management Network
 
Lukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptxLukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptx
pavelborek
 
Science Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around UsScience Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around Us
PennapaKeavsiri
 

Recently uploaded (20)

High-Quality IPTV Monthly Subscription for $15
High-Quality IPTV Monthly Subscription for $15High-Quality IPTV Monthly Subscription for $15
High-Quality IPTV Monthly Subscription for $15
 
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium PresentationKirill Klip GEM Royalty TNR Gold Lithium Presentation
Kirill Klip GEM Royalty TNR Gold Lithium Presentation
 
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
一比一原版(QMUE毕业证书)英国爱丁堡玛格丽特女王大学毕业证文凭如何办理
 
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
1 Circular 003_2023 ISO 27001_2022 Transition Arrangments v3.pdf
 
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...
 
IMG_20240615_091110.pdf dpboss guessing
IMG_20240615_091110.pdf dpboss  guessingIMG_20240615_091110.pdf dpboss  guessing
IMG_20240615_091110.pdf dpboss guessing
 
TriStar Gold Corporate Presentation - June 2024
TriStar Gold Corporate Presentation - June 2024TriStar Gold Corporate Presentation - June 2024
TriStar Gold Corporate Presentation - June 2024
 
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
 
The Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac SignThe Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac Sign
 
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper PresentationKirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper Presentation
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fixKalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
 
Efficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web ApplicationsEfficient PHP Development Solutions for Dynamic Web Applications
Efficient PHP Development Solutions for Dynamic Web Applications
 
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
 
Lukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptxLukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptx
 
Science Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around UsScience Around Us Module 2 Matter Around Us
Science Around Us Module 2 Matter Around Us
 

Failed business venture- TCL and Thomson

  • 1. Entrepreneurship Management Failed business venture- TCL & TTE Presented by- Antara Paul Drishti Saraswat Shreeti Mishra
  • 2.
  • 3. TCL CORPORATION • Publicly traded, Chinese electronics manufacturer headquartered in Huizhou, Guangdong Province, southern China • The three listed companies of the TCL groups are :-  TCL Corporation (SZ.000100) on the Shenzhen Stock Exchange  TCL Multimedia Technology Holdings, Ltd. (HK.1070)  TCL Communication Technology Holdings, Ltd. (HK.2618) on the Hong Kong Exchange
  • 4. TCL CORPORATION … • TCL's corporate slogan is "The Creative Life" • Founded in 1981 and Incorporated in 1985 as TCL Telecommunication Equipment Co Ltd • it started to manufacture consumer electronics for the Chinese market during the eighties, and began to sell overseas in the 2000s
  • 5. TCL CORPORATION … • Though a state‐owned enterprise, it was set up as a joint venture with several Hong Kong investors. Today it sells products throughout the world under four brand names
  • 6. THOMSON SA • Technicolor SA, formerly Thomson SA (NYSE: TCH , Euronext: TCH) and Thomson Multimedia • French international provider of solutions for the creation, management, post‐production, delivery and access of video, for the Communication, Media and Entertainment industries • Technicolor’s headquarters are located in Issy les Moulineaux, near Paris
  • 7. THOMSON SA … • Other main office locations :-  Rennes (France)  Indianapolis (Indiana, USA)  Burbank (California, USA)  Princeton (New Jersey, USA)  London (England, UK)  Rome (Italy)  Madrid(Spain)  Hilversum (Netherlands),  Bangalore (India)  Beijing (China)
  • 8. THE CLIENTS INCLUDE • Studios • Broadcasters • cinema/television production and • post‐production companies • network operators (telcos, broadband, satellite and cable operators) • a range of professional users of videos
  • 9. JOINT VENTURE • In late 2003, China based TCL Corporation (TCL) and France‐based Thomson SA formed a joint venture under the name TCL‐Thomson Electronics Corporation (TTE) • TTE's core product was television sets which were sold globally • It also produced computers which were sold only in China
  • 10. JOINT VENTURE … • The case discusses the rationale for the formation of this joint venture. It highlights the problems faced by TTE and details the reasons why it failed to achieve its objectives
  • 11. ABOUT THE VENTURE • March 2006, China based TCL Multimedia Technology Holdings Limited (TMTHL) had posted a loss before tax of HK$ 98 million on the total sales of HK$ 8 billion • TMTHL's core product was television, which accounted for nearly 88% of its revenues. It also manufactured computers and audio‐video products • TMTHL's television business was operated under its wholly‐owned subsidiary, TCL‐Thomson Electronics Corporation (TTE)
  • 12. ABOUT THE VENTURE… • TTE was the world's largest manufacturer of television sets in terms of volumes • TTE sold television sets under the brand names TCL (in China), Thomson (in Europe) and RCA (in Asia) • TTE attributed the loss primarily to falling market demand for televisions, greater competition from other brands and a substantial fall in prices of high‐end television sets in the US and Europe.
  • 13. ABOUT THE VENTURE… • The company was not strong in the liquid crystal displays (LCD) segment and this affected its sales particularly hard in Europe, where the LCD television market was growing rapidly • Though TMTHL tried to improve its flat television business in 2005 by investing more money, it failed to turn around this business
  • 14. ABOUT THE VENTURE… • The combined loss for North American and European markets in the first quarter of 2006 was HK$ 210 million on revenues of HK$ 3.3 billion while the loss was HK$ 779 million on revenues of HK$ 14.5 billion in the financial year 2005 • TMTHL expected that TTE would break even in 2005 as it was planning to promote its flat‐panel televisions aggressively. • TCL's Chairman Dongsheng Li (Li) expressed confidence that TTE would turn things around by aggressively promoting its flat televisions in Europe and US
  • 15. ABOUT THE VENTURE… • He said, "Flat panel TV is gaining popularity in major TV markets. Being the leader in the cathode ray tube (CRT) TV segment, TTE would capitalize on its advantages in the CRT TV segment and try its utmost best to improve its position in flat panel TV market.“ • However, analysts felt that the path would not be easy for TTE which was still investing heavily in popularizing the RCA brand and was in direct competition with big players like Sony and Samsung
  • 16. RATIONALE FOR THE JOINT VENTURE • In 1999, Li announced TCL's aim: "Our goal is to create a world‐class Chinese enterprise" • TCL's first step in this direction was to enter the US and the EU, two of the world's premier markets • TCL had to rely on acquiring companies operating in the EU to avoid the heavy import tariffs due to the protectionist measures and heavy anti‐dumping duties levied on Chinese television manufacturers
  • 17. RATIONALE FOR THE JOINT VENTURE… • It realised that it was easy to expand using an already existing brand rather than introducing and establishing a new brand, especially in markets like the US and the EU • Explaining this strategy, Vincent Yan (Yan), CFO of TTE, said, "It's not just realistic to build a new brand in a mature market like North America. You just don't have the kind of profit margin for that..."
  • 18. TTE’s PLAN • After mutual consultations, TCL and Thomson established TTE directorate and appointed Li and Dehelly as Chairman and Vice‐chairman respectively • On July 28, 2004, production started under TTE • TTE planned to turn around its North American and European operations by the end of 2005 and increase the worldwide sales to 30 million units by 2006
  • 19. TTE’s PLAN… • TCL aimed to be among the world's 500 largest companies by 2010 with annual revenues of around US$ 18 billion • Some industry experts commented that TCL would have to increase its sales significantly, if the company was to reach its goal which was difficult as there were many competitors with larger market shares
  • 20. TTE RUNS INTO TROUBLE • Other than focusing on TTE, in August 2004, TCL's TCTH formed a joint venture with the loss‐making mobile phone division of the Paris‐based Alcatel SA • Alcatel posted a net loss of 74.4 million euros in the fiscal 2003 and 34.8 million euros in the first half of 2004. The joint venture was called TCL Alcatel Mobile Phones Limited (TAMP).
  • 21. TTE RUNS INTO TROUBLE … • TCL paid 55 million euros to get a 55% equity stake in the joint venture while Alcatel contributed cash and its loss making mobile phone business worth 45 million euros for a 45% equity stake • some analysts praised TCL for taking this bold step, others feared that TCL was overburdening itself as it already had TTE which required considerable attention • They felt that TAMP would further affect the company's overall profitability if not revived quickly.
  • 22. THE ROAD AHEAD • Analysts said that TTE was one of the examples that Chinese enterprises were not well‐equipped to manage joint ventures. Some analysts feared the 'desperation' of some Chinese companies like TCL that were raring to go global without proper evaluation of partners • Industry analysts said that TCL expected the purchase of Schneider and the joint venture with Thomson to help in expanding its business in the West
  • 23. THE ROAD AHEAD… • In regard to TTE's attempts to shake off the losses in Europe and the US as soon as possible, some analysts said that though the company was taking steps to reduce losses by focusing on the fast growing flat television segment, the low margins in this segment were affecting its revenues. Others felt that it would take at least five years for TCL to get global recognition like Sony or Samsung.
  • 25. STRENGTH • Availability of cheap and skilled man power • Part of a matured industry • Home to R&D and design centers to global major • Good after sales service and wide distribution network
  • 26. WEAKNESS (REASONS FOR ITS DOWNFALL) • Error in Sales and Marketing • Not well‐equipped to manage joint ventures • Go global without proper evaluation of partners • Old‐fashioned and unwieldy • High Competition
  • 27. WEAKNESS…. • Lack of Innovative Customer Preferences • Lack of proper Advertising • Lack of Communication • Brand has limited market share compared to market leaders • Impact of Home Country
  • 28. OPPORTUNITIES • Write Down Your Business Plan • Focus on your Branding • Create a Web Presence • Create an Advertising Strategy • Create an Advertising Strategy
  • 29. OPPORTUNITIES…. • Publicity as Key • Measure, Analyze and Decide
  • 30. THREATS • falling market demand for televisions • greater competition from other brands • fall in prices of high‐end television sets in the US and Europe • not strong enough in the liquid crystal displays (LCD) segment • Rising manpower and infrastructure cost
  • 31. SUGGESTIONS • Correct Sales and Marketing Policy • Well equipped to manage joint venture • Latest fashion and Market • Sustain Competition • Innovation
  • 32. SUGGESTIONS…. • Customer Preferences • Management Culture • Impact of home country could have been reversed • Better advertising • Better communication
  • 33. CONCLUSION TCL and Thomson SA ended up as a failed venture, due to the following major points- • greater competition from other brands • fall in prices of high‐end TV sets in US and Europe • Weak liquid crystal displays (LCD) technology • Failure of entrepreneurs to analyze the actual demand of market

Editor's Notes

  1. However, the EU followed protectionist measures and levied heavy anti‐dumping duties on Chinese television manufacturers since the 1990s.