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Zhuyeqing Tea Co.: Reassessing Strategic Direction
內容大綱
In 2018, the chairman of Sichuan Mt. Emei Zhuyeqing Tea Co., Ltd. (ZT), a tea enterprise founded in 1998, faced a strategic decision. ZT had become an economic entity in China, having successfully integrated tea plantation, cultivation, processing, and marketing. Since 2013, however, ZT had experienced sluggish growth. According to a third-party research report, the company's development bottleneck was caused by fuzzy strategy and an out-of-focus operation. The company's chairman needed to decide the next steps for ZT. Should ZT continue to pursue its cost leadership strategy by developing multiple brands and expanding geographically? Or should ZT adopt a focusing strategy, by building its green tea brand, and moving in stages toward the goal of national market expansion?