'Legend' - Redefining the Rules of Marketing PCs in China

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Introduction Contd...

In China, Legend's market share in the PC business even exceeded the combined market share of top four competing brands (Refer Exhibit IV). According to analysts, Legend's success could be attributed primarily to its deep understanding of the dynamics of the PC market in China and the unique marketing mix it offered its customers. The company offered the latest, best quality products at an affordable price through its vast distribution network in China. Over the years, Legend had entered into partnerships with leading multinational companies (MNCs) entering China.

By partnering with Legend, MNCs got the opportunity to make inroads into Chinese markets, Legend benefited by gaining knowledge on several aspects of management. Recollecting the experience of working with MNCs, Liu Chuanzhi (Liu), former chairman of Legend, said, "When we started to work as a distributor for foreign companies, we discovered that management was something we had to learn. So we learned from foreign companies while gaining an understanding of China's computer market."⁴

In 1984, Liu, along with ten colleagues at the Computer Technology Institute of the Chinese Academy of Sciences (CAS)⁵ set up the 'New Technology Development Company' (Legend Beijing) in a one-room office in Beijing, China...

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4] As quoted in the article, "A Computer Legend in the Making," written by Allan R. Gold, Glenn Leibowitz and Anthony Perkins in The McKinsey Quarterly, dated Number 3, 2001.

5] Founded in November 1949 by the Government of China, CAS is a leading academic institution and comprehensive research and development center in natural and technological science and high-tech innovation.

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