TCL: Seeking the Road to Product Innovation Case Solution

Company overview

TCL is one of the first globalized Chinese enterprise which manufactured audio recording tapes in Huizhou, Guangdong province. Li Dongsheng has established the TCL in 1981 as a Households Electronics Limited. During this time, the company has recorded capital of US$800000 with 300 employees. However, the company is also considered as one of the leading 12 joint venture corporation in China. The TCL Corporation provides its customers a high quality services and products that satisfy their needs in the consumers’ electronics. The company started its operations in 1981 and become the growing TV manufacturer in China market. After getting huge success in the domestic market,the company decided that it will further expand its operation in the international market which would help the company in achieving its organizational and steady business growth in the international market. The company is also specialized in producing home appliances, consumer electronics and mobile communications However, as compared to the international market, domestic market provide the company a high level of profitability which would help the company in meeting its organizational goals and objective in the domestic market. As far as international market expansion is concerned, the company endured great financial loss in the overseas market as well as loss its profitability position in the consumer electronic industry.

After analyzing the internal analysis of the company, it is evaluated that the company has already perform the serious of domestic control reform measure which include reorganizations, cost control and structural optimization. By performing these measure, the company has achieve fruitful results in the market. The company emphasized more in understanding the key factors that affect the market position of the company in the international market as well as restricted the company growth in the international market. There are many questions raise in the mind of the CEO of the company. The main question that raise in the mind of CEO is that what has slowed down TCL product from succeeding internationally. Or how the company maintain its core competences and brand image in the international market. As the market of consumer electronics is changing at the rapid speed, and the success of the products is entirely dependent on the innovation of products. Therefore, in order to remain competitive in the market, TCL has evaluated its innovation strategies through that it analyze that what strategies company’s need to implement in the organization that led the company to the success level. Consistently, the product development strategy of the company is entirely depended on the modular of innovation. Moreover, in order to pursue the competitors of the global market such as Samsung; the company focuses on the differentiation strategy which would help the company in competing its competitors in the international market. On the other hand, in order to evaluate the differentiation between architectural modular innovation strategies the company follow the differentiation strategy through that it would easily assess the activities of the competitors as well as evaluate the external risk which impacted the performance of the company.

Timeline of company

1981 TCL established in 1981as TTK Households Electronic Limited.
1986 The company was first registered as a trademark in china.
1992 The company has launched the first TCL king screen TV
1993 Product distribution in the world
2000 The company formed the first TV in 2000.
2004 TTE corporation formed
2006 Culture transformation
2007 Increase brand value
2008 Strategic alliance with internet
2009 Revolution in the television industry
2010 Become the 10 innovative enterprise and achieve TCL award
2011 The sale volume of the company exceeds to 10 million.


The company has faced intense competition from the foreign companies which restricted the scope of development for Chinese companies in the domestic market................

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