Executive Summary Shanghai Tang is a luxury brand company that draws its inspiration from historical Chinese culture. In doing so they were able to capitalize on the intrigue that western nationals felt towards the end of British control of Hong Kong. As people came to visit before Hong Kong became Chinese, they were able to see Chinese fashion influences. Now, the world is making moves into China as they now see the growing potential it has causing a threat to Shanghai Tang’s domestic market while other Chinese inspired companies are threatening their domestic market. If that wasn’t enough the companies long-time creative director, Joanne Ooi, is leaving the company creating a void in the leadership role of the company’s brand vision.
Case Analysis- Wal-Mart Introduction The implementation of Wal-Mart’s strategy in China has failed to achieve the desired sales results. Despite being the leading retailer in the world, Wal-Mart’s model of success that provides a key competitive advantage in the U.S. does not equally translate to diverse international communities. Likewise, Wal-Mart struggled in Germany and eventually withdrew by selling its stores to rival Metro. Despite the challenges currently being faced in China, Wal-Mart has experienced international success in Mexico, Canada and Britain. What long-term strategy should Wal-Mart adopt in China?
This makes it difficult to know for certain what exactly what went wrong and why. Any analysis requires reliance on speculation and raises as many, if not more, questions than it answers. It is still worth looking into because it shows some important points that other companies can learn from. Background Caterpillar has had difficulty establishing a position in China comparable to its position in the rest of the world. In order to grow its operations China, Caterpillar decided to take a route that has proven successful for many MNCs operating in the PRC and use M&A rather than build things from scratch.
The heavy dependence on retail stores leads to widespread availability of counterfeits which provides a unique challenge and directs towards the importance of having own-stores to ensure the legitimacy of the products. Another problem Shanghai Tang faces now is the need of shift of customer focus from European and American buyers to Chinese customers which will expand the customer base of the company. Even though a lot could be done better the management process of the company is excellent which includes the following i) Design Process: The mixture of both the core collection and seasonal collection maintains a balance between trademark products and the newness factor. The focus on theme and the creative designer as the core adds a lot of value to the design process. ii) Brand Considerations: Focus on the Shanghai Tang DNA leverages the brand equity that has been developed till now but on
The heavy dependence on retail stores leads to widespread availability of counterfeits which provides a unique challenge and directs towards the importance of having own-stores to ensure the legitimacy of the products. Another problem Shanghai Tang faces now is the need of shift of customer focus from European and American buyers to Chinese customers which will expand the customer base of the company. Even though a lot could be done better the management process of the company is excellent which includes the following i) Design Process: The mixture of both the core collection and seasonal collection maintains a balance between trademark products and the newness factor. The focus on theme and the creative designer as the core adds a lot of value to the design process. ii) Brand Considerations: Focus on the Shanghai Tang DNA leverages the brand equity that has been developed till now but on the other hand it limits the creativity of the designers.
Even though the Chinese market is not mature right now, yet nobody can deny that it has enormous potential and opportunities. And thus I want to go back to China to continue my career in the long term. Finance is only a small part of Business; I did not have the chance to learn too much about Finance in undergraduate school. Therefore, the
A main problem Timbuk2 is dealing with is their customers being unsatisfied with their products being produced and manufactured in China rather than in the home manufacturing site of San Francisco. Loyal customers of Timbuk2 are concerned that the bags made in China will not be of the same quality as the bags made in San Francisco. With customers having concerns, this could reflect the quantity of bags being produced and profit. Another main problem Timbuk2 is dealing with is the complexity of the machinery that is going to be used; this means there will be an increase in labor costs as well as an increase on the purchasing price of the bags. Timbuk2 is handling the problem correctly by making sure that the bags are being made in China are up to the standard of the bags that are made in San Francisco.
The overseas Chinese played a pivotal role in the economic front for china because during period of national disasters, they would raise money. They also facilitated in the building of china’s infrastructure through the contributions to industrial programs such as building roads, bridges, schools, railways and contributed on other investments for the china. Their remittances to china were important because it was one of the main sources of income of households in china. The importance was also seen in the attempts by the Qing dynasty to get the support from the Chinese merchants through awards and recognition in their contribution to the Chinese economy. They helped the economy by buying Chinese products and boycotted foreign products.
Politically, Chinese government recognized that the existing express channels for people are insufficient. The quality and stability of political leading have a direct linkage with the satisfaction of citizens. It there is widespread of corruption and lack of
Let me start this case study with a quote from the case: »The foreign impression is that the Chinese act as if they are in the driver's seat.« After carefully reading the case of the failed joint venture negotiations between Electrowide and Motosuzhou, it seems obvious that in order to succeed in a global economy, Electrowide would need to locate production in Asia – the fastest growing economy. So, Chinese companies indeed are »in the driver's seat«, meaning that the foreign companies, which want to enter the Chinese market, have to adapt to their culture in order to succeed there. Not only have to foreign companies try to adapt to the Chinese culture, but they also have to fully understand it. This is obviously not the case with the Electrowide's approach to the joint venture negotiations with Motosuzhou. Electrowide's three-person team to carry out the task of purusing a JV with the Chinese counterparts has a shortage on three areas: 1) business skills (none of them have degrees that would aid in international business relations), 2) language skills (only Ms. Morgan spoke conversational Chinese, but traditional Chinese society is male-centered, so her Chinese can be of little help) and 3) intercultural competence.