As a leading global supplier of network and communication equipment, Huawei Technology Co. Ltd. saw a great growth in revenue in 2004. However, the company’s CEO, Ren Zhengfei, did not think it worth bragging about. He even warned his employees that Huawei’s winter would come sooner or later, and internationalization would be a necessity. Founded in 1988 in China, the company was regarded by Cisco as its only global competitor. And yet Ren’s precautions were quite reasonable, because what had made Huawei successful in the past could also restrict its future development, and to become a truly world-class enterprise, Huawei would continue to face many challenges. This case examines Huawei from the perspective of its corporate culture, its technological advantages, its management characteristics, its leader, and its globalization initiatives. It is applicable to MBA or EMBA courses on globalization, organizational behavior, etc., and allows students to learn more about global competitors in emerging markets.
Greatview nurtured a dream of becoming the world leader in liquid food packaging within 20 years. After listing on the Hong Kong Stock Exchange on December 9, 2010, the company began to contemplate overseas expansion. Many European potential clients began to pursue cooperation with Greatview. Meanwhile, it also built a factory in Germany to compete in western Europe, which accounted for one-third of the global aseptic packaging market. The company also faced great challenges, including a lawsuit alleging patent infringement filed by Tetra Pak in July 2010, as well as possible harm from price competition due to higher production costs in its European plant versus its domestic plants. Greatview needed to re-consider its globalization strategy.
Keyword
Aseptic Packaging Industry
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Market Competition
;
Patent Infringement
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Survival of New Start-Ups
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Globalization
In 2003, a group of spin-offs from Tetra Pak launched Greatview, a company that provides liquid aseptic packaging materials and related services. The company was founded by Chairman Hong Gang and Bi Hua, both former executives of Tetra Pak. They successfully organized a well-experienced team and founded a factory willing to be run by them under a Trustee agreement. Then the real challenge came — the competition with their former employer Tetra Pak, which dominated 95% of the market share in China. Would the team of middle-aged entrepreneurs be able to win market share from Tetra Pak, or would Greatview end up being bought by Tetra Pak, as numerous other market challengers had been? How Greatview could survive in the market was the challenge that faced these entrepreneurs.
Keyword
Aseptic Packaging Industry
;
Market Competition
;
Patent Infringement
;
Survival of New Start-Ups
;
Globalization
Facing strong competitors, Greatview struggled to survive. The company placed its focus on small customers and managed to lower production costs. The Chinese dairy market saw a boom in 2005, and Greatview, with a capital injection from PE firms, seized its opportunity to grow before Tetra Pak’s capacity could catch up with the market growth. Greatview’s real break came when it won an anti-trust lawsuit that forced the Tetra Pak–dominated market to open. By 2009 Greatview had become the second largest roll-fed supplier of aseptic packaging in China. How could Greatview achieve sustainable growth? The company would need to steer clear of a mine field of IPR lawsuits and heavily invest in R&D. There was another question to be addressed: facing its global competitor, Tetra Pak, should Greatview pursue globalization as well?
Keyword
Aseptic Packaging Industry
;
Globalization
;
Market Competition
;
Patent Infringement
;
Survival of New Start-Ups
The rise of China and its major corporations will be a key economic development in this century. Even as leading Chinese firms show their muscle through ambitious acquisitions of firms like Thinkpad and RCA, many western investors and business leaders know little or nothing about them. This book looks at the rise of Chinese firms, who they are, how they'll change the global competitive landscape, their strengths and weaknesses, and how established western firms might meet the challenges and opportunities this trend presents.
The Chinese automotive manufacturer Geely Group acquired all shares of Volvo Cars in August 2010, marking a big step forward for Geely’s global ambitions. The newly formed Volvo China management team faced both opportunities and challenges. How should Volvo’s global strategy be adjusted to better leverage the fast-growing China market? What was the key to significant improvement in sales in China? Where should Volvo build its new factories? Meanwhile, cultural conflicts would have to be handled carefully, given the cultural diversity of the Volvo team.
