Founded in September 2016 and based in Beijing, China, ZOMOZOMO primarily conducted business through its gamified freelancers' platform, where designers' works were publicly requested, reviewed, chosen, and rewarded, eliminating some of the long-standing troubles within the industry, such as inefficiency, fragmentation, and lack of transparency. The company soon became a prominent player in the design industry. The first four years of the company witnessed the rapid expansion and diversification of its client base, which began to include many influential brands such as Amazon.com Inc., Nike Inc., and Huawei Technologies Co. Ltd. However, ZOMOZOMO began to find it increasingly challenging to meet the needs and requirements of its high-end clients in terms of response time, service quality control, and confidentiality. In deciding to shift from a bidding platform to a provider of one-stop design solutions, ZOMOZOMO needed to determine whether it should prioritize building its internal capabilities or seek external partnerships to deliver high-quality design solutions to its high-end clients.
Founded in September 2016 and based in Beijing, China, ZOMOZOMO primarily conducted business through its gamified freelancers’ platform, where designers’ works were publicly requested, reviewed, chosen, and rewarded, eliminating some of the long-standing troubles within the industry, such as inefficiency, fragmentation, and lack of transparency. The company soon became a prominent player in the design industry. The first four years of the company witnessed the rapid expansion and diversification of its client base, which began to include many influential brands such as Amazon.com Inc., Nike Inc., and Huawei Technologies Co. Ltd. However, ZOMOZOMO began to find it increasingly challenging to meet the needs and requirements of its high-end clients in terms of response time, service quality control, and confidentiality. In deciding to shift from a bidding platform to a provider of one-stop design solutions, ZOMOZOMO needed to determine whether it should prioritize building its internal capabilities or seek external partnerships to deliver high-quality design solutions to its high-end clients.
In 2013, the edible bird's nest industry outfaced chaotic market competition, poor customer awareness, a lack of trust, and a lack of strong branding during its infancy, thereby resulting in development opportunities for new categories and brands. Xiaoxiandun Freshly Stewed Edible Bird's Nest ("XXD") foresaw the strategic direction and emerged into prominence in the industry within less than six years. Moreover, XXD solved the pain points of the industry and consumers, developed the category of "freshly stewed bird's nests," introduced a customer-to-manufacturer (C2M) model, and directly reached consumers from the factory through value creation. Furthermore, XXD achieved rapid growth and became a leader in the industry through its innovative business model. However, XXD, which began with online sales, faced back-and-forth attacks from competitors. Traditional bird's nest giants launched online sales, intensifying online traffic and competition. Accordingly, XXD considered opening brick-and-mortar stores to further expand the brand's influence and increase its competitiveness, which would require a huge investment of resources. However, no consensus was reached among the founders of XXD despite several discussions within the company.
Costco Wholesale Corporation (Costco), the world’s second-largest retailer, officially entered the Chinese market in Shanghai in August 2019. The opening day was so jam-packed with customers that the massive influx forced the company to close early, after only five hours of operations. However, after only one week, customers were lining up outside the store, asking Costco for refunds for their membership cards. The warehouse’s traffic declined significantly as well. What caused this situation? Did Costco make the right decision to enter the Chinese market? Does Costco’s membership system fit the Chinese market? What kinds of challenges will Costco face in the future?
Costco Wholesale Corporation (Costco), the world's second-largest retailer, officially entered the Chinese market in Shanghai in August 2019. The opening day was so jam-packed with customers that the massive influx forced the company to close early, after only five hours of operations. However, after only one week, customers were lining up outside the store, asking Costco for refunds for their membership cards. The warehouse's traffic declined significantly as well. What caused this situation? Did Costco make the right decision to enter the Chinese market? Does Costco's membership system fit the Chinese market? What kinds of challenges will Costco face in the future?
Sudden outbreak of the COVID-19 epidemic in 2020 caught small- and medium-sized Chinese enterprises off guard, such as Ciyang Garment Factory (CY) in Zaozhuang City, Shandong Province. Many migrant workers could not come for work on time because of the outbreak, and Li Qiang-the founder and general manager of CY-felt uneasy about defaulting on orders and worried about future lawsuits. The experienced garment maker Liu Ning, who had been working in Dongguan, Guangdong Province, was also stranded at home in Zaozhuang because of the epidemic. After meeting with Li, the two reached a cooperation agreement. Liu Ning's arrival temporarily solved the urgent labour shortage of CY; however, the pay difference between the veteran senior workers in the factory and those who had worked in the south, such as Liu Ning, became the catalyst of the 'absenteeism incident'. Because of the human resource management problems caused by this incident, Li was once again caught in a dilemma. Will the absent workers be back in 3 days? How should Li solve the human resource crisis caused by absenteeism? To help the development of CY, does Li need to reform the human resource management system? How can he change it? This case examines Li, the director of the factory, and Liu Ning, a skilled technician, to demonstrate the difficulties faced by small- and medium-sized private manufacturing enterprises in China under the impact of COVID-19. With the conflict between the two salary systems as the background, this case discusses how Li deals with the crisis and the future development plan of CY.
Wahl Clipper Ningbo Ltd. is a wholly owned company of Wahl Group, a century-old American enterprise, in China. Owing to a crisis in 2008, Wahl (Ningbo) was on the verge of bankruptcy. Qian Moxing was appointed as a general manager at the time of the crisis. In line with the proverbial saying 'new broom sweeps clean', 'A new person makes many changes'. Qian was enlightened with traditional Chinese culture. Therefore, he motivated employees to learn traditional Chinese culture. In addition, the introduction of management reforms to encourage 'working and living happily for common development' resulted in tremendous changes within a few years. This reform led the US-based headquarters to adjust the strategic positioning of Wahl (Ningbo): from a manufacturer to an enterprise integrating independent R&D, production, and sales and from a producer of middle and low-end products for overseas households to a manufacturer of high-end products for Chinese hair salons. Strategic transformation meant opportunities as well as challenges. Though the company's current corporate culture and human resource management aligned with the goals of a happy enterprise, it failed to meet the goals of sales and R&D. Accordingly, this article highlights ways through which Wahl (Ningbo) can enhance the current corporate culture and human resource management to adapt to the new strategic positioning.
The recent internet storm has swept almost all industries. In China, Suning, the giant home appliance chain company, has implemented comprehensive internet transformation, the internet and communication companies such as Baidu, Alibaba, Tencent, Lenovo, LeTV and Xiaomi have invaded into the home appliance industry one after another, taking their advantage in content, platform, operation systems, and so on, and therefore greatly influenced the whole color TV industry. To cope with the post-PC changes, in 2013, Changhong has upgraded its previous "Three Coordinates" strategy (business model, value chain, industrial form) into a "New Three Coordinates" strategy (intelligence, network, collaboration), and launched its new generation of home appliance products, ChiQ series, intending to make remarkable breakthroughs to create new competitive edges. It has also extended its accumulated IT systems to set up centralized IT platforms for production, transaction, and R&D, and even tried to edge into the field of "intelligent home, intelligent community, intelligent city". Can these measures, however, represent new directions of the home appliance industry and internet companies and make Changhong, once the "King of Color TV" twenty years ago, gain its leadership in the new internet era?
Established in 2007, JD Capital was able to quickly gain a strong foothold in the Chinese private equity (PE) market by massively investing in pre-IPO deals and taking advantage of the high valuation offered by the ChiNext Board. JD Capital has engaged in a "factory-style" operational model. The firm has approximately 60 branch locations across China with more than 300 employees, where each local office is responsible for local deal sourcing and for strengthening communications with local governments, banks, and securities firms. Chinese private equity market has experienced drastic changes since 2012. The issuance of new IPOs slowed down and was later suspended, the opportunities for exit have greatly narrowed, and the raised funds have rapidly decreased. JD Capital's early success had enabled it to obtain a large portfolio of deals, most of which are pre-IPO projects, the slowdown and suspension of IPOs imposed serious exit challenges. Can JD Capital's past investment strategy and business model continue to be effective? Is listing on the New OTC Board a lifesaving solution? As China's capital market has become more mature, how should JD Capital transform itself to stay competitive in the industry?