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

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Case Details:

Case Code : MKTG061
Case Length : 16 Pages
Period : 1984-2003
Pub Date : 2003
Teaching Note : Available
Organization : Legend Group Limited
Industry : IT
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"It was astonishing, since no one -Chinese or foreign -thought a Chinese company could beat respected international brands. Legend is heroic because it gave confidence to Chinese people that our technology could be as good as any in the world."¹

- Edward Tian, CEO of China Netcom, a Customer of Legend.

Introduction

In February 2000, the Legend Group Limited (Legend) was ranked #8 in the "Global Information Technology 100"² survey (Refer Exhibit I) conducted by BusinessWeek magazine. The media remarked that it was a major achievement for a Chinese IT company to be ranked with global IT industry majors like Oracle, Sun Microsystems, and Cisco Systems. In 2001, Legend was voted Asia's Best Managed Company in a survey conducted by Finance Asia.³ Over a period spanning 14 years, Legend had emerged as the market leader in the personal computers (PCs) industry in the Asia Pacific Region except Japan (APEJ), with a market share of 11.4% (Refer Exhibit II).

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The company was also the leading PC manufacturer in the People's Republic of China (China), with a 27.5% market share (Refer Exhibit III).

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1] As quoted in the article, “Enter the Dragon,” posted on www.wired.com dated August 2002.

2] The companies were ranked on four criteria that were given equal weight -shareholders'return, return on equity, revenue growth, and total revenues.

3] The survey covered the performance of leading companies in ten countries in Asia. Investors and executives from different financial centers (including Hong Kong, Singapore, New York and London) participated in the survey.


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