Pactera's Expansion in the United States
(9 pages of text)
In 2012, Pactera, a China-headquartered IT service firm, went public on the NASDAQ. In 2014, it was taken private by a consortium led by the U.S.-based global investment and advisory firm Blackstone. This accelerated the firm’s expansion in the U.S. market and its plans to move up the value chain. Pactera’s executive vice-president must formulate and implement the right strategy in order to continue its success in the U.S. market, gain access to cutting-edge technology and talent, and better compete against sophisticated American and Indian rivals. Failure to apply the correct strategy to its operations in the U.S. market could restrict its growth and negatively impact its performance in the global market.
This case provides insights into the challenges facing Chinese-born IT multinationals when expanding in the U.S. market. It asks what the best strategy is for a Chinese-born IT multinational to use to increase its competitive advantage and move up the value chain in the hypercompetitive U.S. market. It may be used at the undergraduate or graduate level in courses on the globalization of Chinese business or any business course related to globalization. Students will:
- Identify the motivations that attract Chinese-born multinationals to expand in the U.S. market.
- Identify the considerations of offshore sourcing around the globe.
- Analyze the firm’s market entry strategy and branding strategy in the U.S. market.
Information, Media & Telecommunications
United States, Large, 2012
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