From strategy to numbers: how to penetrate overseas market for ChinaSoft, when Chinese ITO and BPO industry being re-structured in 2012

Abstract

Subject area

Business strategy.

Study level/applicability

This case study is appropriate for MBA and EMBA courses, especially for courses oriented to emerging markets such as China. It can be used in Business Strategic Management or similar courses, combined with the methodology lectures of Managing Entry Modes and Competitive Strategy.

This case study provides material for understanding/studying the development of a large Chinese software enterprise.

Case overview

As a result of Chinese ITO and BPO market in the face of re-structuring in 2012, Huawei invested in ChinaSoft in May and Vance info merged with HiSoft in August, both of which make ChinaSoft the third largest market-share owner. However, ChinaSoft has a dilemma in its strategic planning for the next three years. If it cannot break through the suppression from the first and the second placed companies, it may lag behind very soon. If it strives for the No. 2 position in market share, is organic growth or M&A strategy the right approach to adopt? Thus, ChinaSoft is now in need of strategic reform and restructuring. The case study analyzes the approaches that Chinese enterprises can adopt in order to sustain overall cost leadership strategies and avoid the related risks in the ITO and BPO industry.

Expected learning outcomes

This case study intends to encourage students to learn and use methodologies such as Porter's competitive strategy framework; Rugman and Collinson's theory, selecting and managing entry modes; four basic global strategies, by Hill and Jones.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Citation

Zeng, V.J. (2013), "From strategy to numbers: how to penetrate overseas market for ChinaSoft, when Chinese ITO and BPO industry being re-structured in 2012", , Vol. 3 No. 1. https://doi.org/10.1108/EEMCS-12-2012-0203