Recently the NHK News reported the following:
"NEC" the major electric machine manufacturer would, together with a major personal computer manufacturer the "Lenovo group" of China, establish a joint venture company to develop the business jointly that aimed at improving earning in the key business of personal computer.
According to the announcement, a holding company would be established under joint management with the Lenovo group in June this year, as a subsidiary, NEC's personal computer business and Lenovo's Japanese corporation were transferred to it to jointly carry out the computer business. In the joint venture company the majority investment was from Lenovo; the two companies would jointly procure materials, and jointly do development, assuming that it could sell products with high competitiveness in cost. With NEC leaving behind the brand name, and making use of worldwide service net of Lenovo, this company aimed at the Japanese firms to sell the products although temporarily withdrew from the overseas market. Moreover, it intended to examine the joint development in items such as multifunctional terminals that the demand had expanded worldwide. Lenovo was a personal computer and media manufacturer in the fourth place in the world that opened its base in Beijing of China and had purchased its personal computer business from "IBM" of the US six years ago. NEC was aiming at improving earnings; its sales in domestic personal computer was in the head position for years, but as price competition had intensified it hoped to increase its profit through the co-operation. President Nobuhiro Endo of NEC said in an interview that "I want to maintain the domestic share in the head position by making the best use of the advantage in scale through this co-operation, and aim at strengthening the personal computer business".
To co-operate with other companies through joint venture, NEC is making the necessary adjustment in preparation for the keen competitions ahead.