Ivey Publishing

Product Details

Dürr AG: From Premium to Mid-Market in China
Product Number:
9B15M071
Publication Date:
07/15/2015
Revised Date:
10/19/2015 (Format Change)
Length:
16 pages (10 pages of text)
Product Type:
Case (Field)
Source:
CEIBS-Ivey
In the autumn of 2013, the president and chief executive officer of Schenck Shanghai Machinery Corp. Ltd., a subsidiary of the Dürr Group situated in Shanghai, China, was reviewing his business operations. The Dürr Group was a multinational machine tool manufacturer based in Germany. In emerging economies, the mid-market had become the battleground between foreign and local firms. Traditionally, foreign investors earned healthy margins in the premium segment, but many realized that they were missing out on fast-growing market segments and were facing potential threats from local competitors who were moving up-market. To remain competitive and to ensure future growth and profitability, while not compromising the brand's reputation, the Chinese subsidiary had to ensure continued support from headquarters in Germany.
Learning Objective:
The case has been designed for use in strategic management, business in emerging economies and international business courses. Its objectives are to:
  • Assess the opportunities and risks associated with an entry into the mid-market in an emerging economy.
  • Assess the competitive dynamics in business to business markets in China and identify key success factors.
  • Assess the potential tensions between headquarters and subsidiaries in multinational enterprises and suggest how a subsidiary can best manage such tensions.
  • Design strategy and action plans.
    Issues:
    Disciplines:
    General Management/Strategy,  International
    Industries:
    Manufacturing
    Setting:
    China, Large, 2013
    Intended Audience:
    MBA/Postgraduate
    Price:
    $5.30 CAD / $5.00 USD Printed Copy
    $4.50 CAD / $4.25 USD Permissions
    $4.50 CAD / $4.25 USD Digital Download
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