OREANDA-NEWS. August 29, 2011. TCL Corporation launched for the first time its three-dimensional development strategy model based on "Three Capabilities" to propose its strategic direction and roadmap while releasing its 2011 half-year report, reported the press-centre of TCL.

The new 3D strategy, based on "Three Capabilities", foundation of the Corporation's business

Based on industrial capability, technical capability and globalized operating capability, the new three-dimensional development strategy model clearly defines the strategic importance of "Three Capabilities" in the future development of TCL Corporation. In order to build a strong company while pursuing sustainable development, industrial capability is the foundation for the survival of an enterprise, technical capability is the key to sustainable development and globalized operating capability is the core competitiveness of an enterprise.

In view of this, TCL Corporation established a complete set of strategic goals to enhance its "Three Capabilities". The company will stick to the "go global" approach to integrate worldwide resources, continuously strengthen the position of its core businesses, build the leading advantages in China and worldwide, and diversify its businesses on basis of its business advantages and derivative resources. Meanwhile, the company will innovate to constantly enhance its industrial capability and technical innovation ability to penetrate or transform into high-value sectors. At the same time, the company will deploy new business forms, make efforts in 4C integration, and leverage its advantages in content and services to evolve into a complete solution provider for digital home and smart services.

To implement the three-dimensional development strategy, TCL Corporation developed a set of soft power system strategies for three-dimensional development on the basis of the "Three Capabilities". The soft power system involves service, branding, channel and talent development. In terms of service, TCL Corporation will innovate in its business models to provide value-added service or complete solutions to customers so as to extend the modes whereby the service industry gains profit. In terms of branding, the company will implement its core branding strategy to enhance the industrial position and influence of TCL brand and build a stronger brand. In terms of channel, the company will strengthen exploring premier channel resources and innovate in channel management modes to effectively enhance the productivity and accelerate business growth of the company. In terms of talent development, TCL Corporation will innovate in talent management to provide a skilled professional team for the company's global business.

New "4+6" Business Structure, Focused on Major Business
In an era of horizontal diversification, companies compete in capital operation and strategy selection. In the era of vertical diversification, companies rely on downstream and upstream resources to gain competitive advantages and competition among corporations is determined by their resource integration ability.

TCL Corporation optimized and adjusted existing industrial sectors, redefined its business structure and upgraded its previous "4+2" industrial mode consisting of "four business groups" and "two business divisions". Based on core business, the new "4+6" industrial structure is composed of four core units: TCL Multimedia, TCL Communication, China Star Optoelectronics Technology, and TCL Home Appliances Group, and six business divisions: System and Technology Department, Techne Electronic Group, Emerging Business Division, Investment Business Division, Highly Information Industry and real estate.

In the new company structure, TCL Corporation upgraded the position of China Star Optoelectronics Technology as its core business for the first time. Launched on Aug 8th, China Star Optoelectronics Technology will help TCL Corporation penetrate into the whole industrial chain of LCD TV and hold a leading position in the whole mass production process of LCD TV. The emphasis on home appliance business is an inevitable result of increasing the scale of the company. They are both essential for the future development of TCL Corporation.

Establishment of the six businesses depicts the synergic prospect of different sectors. A new industrial chain ranging from upstream LCD display component to display terminal content and service supply surfaced to deliver coordinated growth of white and black household appliances and circular economy of home appliance.

It can be predicted that the establishment of the new "4+6" industrial structure will enable TCL Corporation to further clarify its industrial sectors, considerably improve the synergy effect of different sectors to deliver their coordination and cooperation in a comprehensive manner, and maximize the advantage of scale economy, to improve the company's competitiveness in international competition.