Pacific Century Cyberworks (PCCW), a Hong Kong-based Internet company, emerged from an insignificant position since its mid-1999 listing to be a leading Internet player in Asia and China in early 2000. To achieve its growth, PCCW has followed an aggressive acquisition strategy providing it with ownership positions in a multitude of Internet ventures. The case is positioned at the time of PCCW's largest potential acquisition - Hong Kong Telecom - the fourth largest company in Hong Kong. Students will see how a new entrant to a rapidly growing industry can quickly establish an important presence; learn about competitive advantage in the Internet industry; and, look at the structure of the Internet industry from the perspective of a company that provides an integrated range of services to consumers. A 'B' case is available (product 9B00M032), describing the situation faced by PCCW several months after the announcement of its merger with Hong Kong Telecom.
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