Case of Digital China - What Are Digital China’s Strengths?

The Digital China

What are Digital China’s strengths?

a. The strong back ground

As we know Digital China(DC) came from Lenovo which is the biggest IT producer in China. In 1990s when PC began to get the Chinese market sharing Lenovo became the biggest company. So the DC have a strong back ground in China which includes capital, resource, and technology.

b. Early entry the market

In 1990s China IT market had a large increasing and that's when the DC born. So we can treat DC as one of the first Chinese IT companies. We all know that the later you entry the market the more you will pay, so DC use low capital and get the large market sharing. It also a way to prevent the new company coming into the market.

c. High technology

DC is beyond the technology in China. For one reason, it came from Lenovo which had high technology, on the other hand, DC has improved their core technology in few years and keep it beyond other company in China. This becomes the core competition in the company and keeps the company running well.

d. Employees' training plan

The company has a whole plan of employees' training. From 1990s the first generation of the company to now, the employees have been training by different level. For example, a new technology man maybe trained since he came into the company, and this man is prepared to take places of high level position, 1 or 2 years later, when the first man get the higher position an other man new man begin to be trained. Like that, the company always has human resource, and can keep the race of the market all the time.

What are its major weaknesses?

a. Life time of business process

In now days one of the weaknesses is the business process in DC waste too much time. Like when the technology guys find a new way to improve the efficiency of products it may cost 2 or 3 month to realize it in manufacture. Too much time on the business process make the company miss some chances, and it also a waste of money.

b. Partners

The partners become a very important weakness in DC. In few years, many IT companies in China find partners with foreign big company like IBM and Microsoft, but DC do not get these powerful partners. That leads the company lack of new technology and capital, also limit the company to get abroad market.

c. Limitation of the industry

The Chinese IT industry are in a high developing period but as we all know the Chinese market is controlled by the government in someplace, so that if the company want to develop well in China it may have more limitation than other country, For this reason some of the