UTStarcom in China

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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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Case Code : BSTR184 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Growth | Diversification | Single Product | Single Market
Case Length : 15 Pages
Period : 2001-2005
Organization : UTStarcom
Pub Date : 2005
Teaching Note : Not Available
Countries : China
Industry : Telecom and Broadband


The business operations of US-based UTStarcom, a leading manufacturer of telecommunication equipment, grew rapidly in China since 1995. The company's revenues in 1995 were $10 million, which grew to $2.7 billion by 2004. This case describes the business opportunity that UTStarcom identified and exploited in the Chinese telecom markets, mainly because of its highly successful product - Personal Access System (PAS). An account of various strategies adopted by the company to manage its rapid growth is presented. Finally, the case describes the challenges facing UTStarcom as a result of maturing market for PAS and the measures taken by the company to overcome these challenges. The case highlights the benefits and drawbacks of an organization's single product, single market strategy.


Develop an understanding of the Chinese telecommunication industry
Understand how companies can exploit business opportunities in China
Analyze strategies pursued by companies to manage rapid growth
Understand the benefits and risks involved in a single product, single market strategy


  Page No.
Introduction 1
Background Note 2
Capturing the Chinese Market 3
Managing Growth 6
The Diversification Strategy 8
The Problems 10
Exhibits 11


UTStarcom, Personal Access System (PAS), Networking Solutions, Wireless in Local Loop (WLL), Global System for Mobile Communications, 3G, Chinese Telecom Industry, Chinese Ministry of Information Industry and Voice-over Internet Protocol.

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