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Entrepreneurship In China's Private Sector: Guangxi's Elite Optical
內容大綱
This case depicts how institutional transitions in an emerging market shape the strategy and performance of a small business and its surrounding competitive dynamics. Elite Optical, a family-run business, was founded in Nanning, Guanxi Province, during China's economic reforms in the late 1980s. Its first eyeglass shop, opened in 1986, received immediate success when the only major competitor at the time was Heng De Li, a traditional state-owned enterprise (SOE). In 2013, the entrepreneurial family firm was celebrating its 28th anniversary, with 15 optical retail outlets in Nanning city. However, the competitive landscape in eyeglass industry has changed significantly and become more intense since the early 2000s when more domestic and international players entered the local eyewear market. Cheng Zhi, CEO and Chairman of Elite Optical, is contemplating how to respond to the competitive threats. At the same time, he also faces challenges on how to cope with the growth demand by transforming its family business into a professionally-managed firm in the near future.