In less than four years, Easy Flower (EF) grew from an e-commerce flower retail start-up to China's largest supply chain operator in fresh flowers. Easy Flower positioned itself as a provider of quality flowers to retail florists. Taking advantage of its strength in technology talent, and pooling its finances, the company successfully created a national distribution infrastructure network, disrupting and transforming the fractured supply chain system of China's flower industry and dramatically enhancing its supply chain efficiency. Having built an industry leader from scratch, founder Rong Chao had to think about Easy Flower's future strategy. In late 2018, he saw two options: further integrating the flower value chain in China, or internationalizing his business by exporting components of his technology and systems to flower platforms in other countries. Constrained by the company's resources, he had to assess the various risks and requirements that each direction would entail.
Audi has taken the lead in sales and dominated the luxury car market at the beginning of its entry in China. During the second stage (2001-2011), the localization of true Audi standard has experienced a shallow-to-deep and easy-to-difficult process. Moreover, FAW-Volkswagen reforms the marketing channel and establishes independent sales network for Audi A6 to start top-grade brand strategy of Audi. This is also the period that a large number of international competitors began to enter and compete in Chinese markets. To outperform competitors, Audi adopted such-called "localization of the whole value chain" strategy, i.e., realizing localization in product R&D, procurement, production, marketing and other links. The strategy allowed the quality to be more stable and the cost to be reduced effectively. With this strategy, by 2012, Audi became the most popular car brand, and its sales volume grew at the speed of 100,000 vehicles per year. Audi defines the concept and image of Chinese "luxury car" in a real sense and an all-around manner.
Audi is one of Germany's great automobile manufacturers that have the longest history. Its principle of adhering to high-tech level, high-quality standards and high-powered criteria has led the Audi brand to becoming the landmark among the most notable luxury cars. Audi's history in China can be traced back to 1988, when FAW and Audi signed the "Technology Transfer License Contract on the Production of Audi FAW". In 1991, FAW-Volkswagen Automotive Co., Ltd. (hereinafter referred to as FAW-Volkswagen) was founded. With 25 years of development, FAW-Volkswagen has set up three bases in the cities of Changchun, Chengdu and Foshan, which are respectively located in the Northeast, Southwest and South of China, as well as seven large-scale plants that are specialized in production. Audi is the first luxury car brand stepping into the Chinese market. Over the past 30 years, it has made remarkable achievements. The FAW-Volkswagen Audi "trilogy" case has described Audi's development history in China, and the situation as well as the strategies of FAW-Volkswagen Audi during three stages. The first stage (1987-2000) of development for FAW-Volkswagen Audi in China has laid a foundation for its leading position among luxury car brands. The case describes the founding of joint ventures, the conflicts among partners, and the strategies adopted to initiate and lead Chinese luxury car industry, all of which are very typical for most foreign entrants into Chinese markets during the beginning of China's 'opening up'.
In the second stage of development (2001-2011), FAW-Volkswagen Audi launched a strategy of "localization of the whole value chain", i.e., realizing localization in product R&D, procurement, production, marketing and other links. The strategy allowed the quality to be more stable and the cost to be reduced effectively. In terms of product category, FAW-Volkswagen Audi has been keeping in step with Chinese consumers' habits and constantly introducing new localized models. In terms of brand construction, FAW-Volkswagen Audi put forward three core values: honorable, enterprising and dynamic, communicated Audi's brand image to consumers from product quality to marketing model and after-sales service through various ways. By virtue of the successful strategy and the employees' efforts, FAW-Volkswagen Audi has obtained overall advantages in whole industrial chain, defining the concept and image of Chinese "luxury car" in a real sense and an all-around manner. However, after 2012, new changes occurred in the overall industry environment. While FAW-Volkswagen Audi still ranked the first in Chinese luxury car market, the gap between it and the followers is shrinking; the consumers have transformed from the previous herd mentality and concern to basic functions to pursuit of individuation and differentiation; from 1987 to 2012, there have always been a lot of government and high-end business people who favored Audi A6L. Though Audi has launched a number of personalized and youthful products and expanded its product line, a deep impression of Audi as 'official car' still remains in the minds of most consumers. What is more, some new potential rivals, such as new energy car and Internet car, keep on emerging in Chinese market. In this condition, how would FAW-Volkswagen Audi deal with the challenges? This case describes the challenges and Audi's strategic choices at the gate of new era.
Founded in 1983, China Nonferrous Metal Mining (Group) Co., Ltd. ("CNMC") is one of the earliest and largest global Chinese nonferrous metal industrial enterprises. It has investments and projects in 27 countries and trade networks in nearly 100 countries with a particular focus in Africa. CNMC has been exploiting mineral resources in Zambia since 1998, becoming one of the most important copper industry enterprises in the country. In 2013, CNMC was included in the Fortune Global 500 for the first time, ranking 482nd with operating revenues of 24 billion USD. In 2015, CNMC ranked 390th among the Fortune Global 500. CNMC has been actively committed to becoming a bellwether of "going global" among Chinese enterprises, making great contribution to Africa by promoting mutually beneficial cooperation. Confronted with intensifying competition in China and overseas, CNMC leaders look to the future and endeavor to further develop African businesses, to strengthen CNMC's overall competitiveness, and to fulfill sustainable development, on the basis of its international expansion strategy.
With the rapid growth of China's economy and China's increasingly integration into the global economy in the past two decades, China's leisure clothing and garment enterprises achieved a rapid rise and became an important competitive force confronting with the foreign brands in the Chinese market. Zhejiang Semir Garment Co., Ltd. (hereinafter referred to as "Semir Group") was founded in 1996 and currently owns two brands ("Semir", targeted at 16-25 year olds, providing affordable casual clothing featuring "fashion and vitality"; Balabala, providing children's clothing, targeted at 3-12 year-old children in better-off families). Both brands occupy a leading position in the Chinese market. However, with the intensified market competition and changes of cost elements and new sales channels, Semir Group faces new challenges.