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Heir: Taking a Chinese Company Global

In: Business and Management

Submitted By glotszkwan
Words 470
Pages 2
For the case of “Hair: Taking a Chinese Company Global”, the first takeaway is that in order to enter a foreign market, having licensing agreement and setting up joint ventures are the best things to do in order that the company could successfully imitate the practices. The second takeaway is that quality is not something that could ensure your supreme sustainability in the market. It may enable a company to charge premium price for a period of time, but no one could guarantee if the industry would impose any stringent regulations that could fundamentally weaken one’s competitive advantage like quality. However, Hair establishing a complicated distribution channel could be a wise strategy that successfully impose a tight barrier for foreign entry into its market. The third takeaway is that being the first-mover in localizing its products to cater the foreigner market could help Hair, a Chinese brand suffering from such deeply-rooted bad image of low-quality, succeed in the more-developed countries like the US where lots of giants are already occupying a significant amount of market share.
For the case of “Responding to the Wii”, the most important takeaway is the concept of two-sided model and its pricing strategy. First, the presentation makes me realize that there are quite a number of real life examples belonging to the two-sided market like operating system, recruiting sites etc because there is an indirect network effect in which the increase in “consumer” (end-users/job seekers) can reinforce the increase in “complementors” (software developers/recruiters). The second takeaway is that besides actively attracting complementors, it is also crucial to monitor the quality at the same time. Take the Play Station as an example, Sony has to at least set some direction or theme guidelines for its third-party developer in order that the games produced are of good quality and are in line with Play Station’s positioning (relatively dark and valiant compared to Wii). The last takeaway is that the razor-blades model is advised to two-sided market because offering low price for the product could enlarge its customer pool, consequently the profit earned from complements could be higher.
For the case of “Starbucks and Conservation International”, the most important takeaway is CSR is something every business should do nowadays since it has become a prominent practice. Moreover, in order to fulfill social responsibility in a sustainable way, a company should have partnership with independent NGO who has mutual interest and same objective if the company decided to work on corporate social responsibility with its supplier side rather than the customer side. Each party should have equal contribution and common goal that they want to achieve. Meanwhile, both parties should be open and actively build trust in order to build long term relationship in the partnership.

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