Legend China WTO

Some of the advantages enjoyed by Legend that enabled it to surpass foreign competitors were its extensive distribution network and its government ownership. Legend established thousands of distributors throughout China, while U.S. companies combined have only a few dozen. Most competitors are confined to major cities while Legend distributes throughout the country. So, too, foreign competitors focused on the more lucrative business market and fell behind quickly in the home market. By being 61% owned by the government, Legend also enjoys advantages that fuel its success (Schmit 01B). For example, China recently took measures to lower the amount of smuggled goods into China that hurt foreign competitors whose products makeup the majority of smuggled goods. In addition, government agencies are encouraged to buy from local compan

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ina” (Hung PG44). Indeed, Legend is facing increasing competition in China from local manufacturers like Shanghai Lingtong, who hopes to compete with Legend in the IT service sector. The software company argues that Legend has three distinct disadvantages on which it hopes to capitalize: 1) Legend is deficient in self-capability; 2) Legend’s client group positioning is unclear; and 3) Legend has no competitive advantage in the IT service sector (Shanghai 6). Legend has tried to offset such homegrown competition by increasing its number of service centers from 250 to 400 at the present time (Schmit 01B). Shanghai argues that IT service will be the biggest demand coming from the Chinese market, while after entry into the WTO the Chinese economy will be gearing up to meet the standards of the world economy. With respect to lowered tariffs, Legend does import such items as chips, hard drives and operating systems, so it will also benefit from WTO membership lowered tariffs. China continues to have the lowest labor costs which will help keep costs low for Legend. In addition, Legend’s inventory management should enable it to keep prices low and win market share from other nations despite its WTO membership. For example, Legend’
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Some common words found in the essay are:
Chinas PC, WTO Chinese, Shanghai Lingtong, Happy Family, China Yongtu, Legend WTO, Chinas WTO, Hung PG44, Chi Lo, Hung Legend, schmit 01b, foreign competitors, wto membership, market share, hung pg44, wto entry, pc market, chinas wto, pcs china, increased competition, win market share, top pc maker, chinas membership wto, seller pcs china, chinas pc market,
Approximate Word count = 1301
Approximate Pages = 5 (250 words per page)