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Wang's Fortune Tea from China: Competing for a New Arena of the Beverage Market (B)
Supplement to HKU759 -
Wang's Fortune Tea from China: Competing for a New Arena of the Beverage Market (A)
Wang's Fortune Tea, marketed as Wanglaoji in mainland China and considered to be the founder of Chinese herbal tea, grew from a strong regional brand in China with limited national market penetration to becoming China's top soft drink giant with 90% market share of the country's herbal tea industry. This case explores how Wang's Fortune Tea became China's top selling herbal tea brand. The case asks students to analyze the company's growth strategies and to consider if it can continue to sustain its competitive advantage while facing intense competition from domestic and international companies.