Holding a massive beer festival brought the Chinese city of Qingdao and Tsingtao Beer Co. Ltd., China's most famous beer brand, direct economic benefits and public awareness. However, through the Qingdao International Beer Festival-a natural advertising opportunity-foreign beers benefited as well. To date, Chinese beer brands held less than half of the high-end Chinese beer market. China levied no tariffs on beer imports, which increased the market competition. Were the objectives of Tsingtao Beer and the local government fully aligned with regard to the annual festival? Was the beer festival helping one more than it helped the other? Did it help Tsingtao Beer's competitors? Should the Qingdao International Beer Festival work to recapture or emphasize some of its own cultural uniqueness?
In May 2018, a China-born entrepreneur living in Canada was at a seaside market in Qingdao, China, inspecting inexpensive pearls. She wondered whether pearls presented a good market opportunity in the West. At markets in China, she consistently found cultured pearls that would cost far more in Canada. This experience led her to wonder whether or not it was feasible to sell pearls on a wholesale basis in Canada, or perhaps through one of many retail options. Or was there a reason why pearls-such a timeless product-did not present more of a dynamic market opportunity in the West?
Hisense Co., Ltd. (Hisense) was the fourth-largest television maker in the world, but its market share and brand recognition remained low in Europe. Therefore, strengthening its branding and improving its sales there were priorities for the Chinese company. In 2013, Hisense was considering whether to establish a strategic alliance with the German high-end television manufacturer Loewe AG (Loewe). Despite having a good reputation, Loewe was suffering severe financial distress and facing possible bankruptcy. If Hisense co-operated with Loewe, it would gain access to Loewe's distribution network in Europe and utilize co-brand advertising with Loewe. In turn, Loewe would benefit from Hisense's long-term technical support and gain access to the promising Asian market. Should they proceed?
Before re-entering the Southeast Asian market in 2015, the Hisense-Hitachi joint venture mainly used the well known Hitachi brand to explore overseas markets. After the JV had accumulated enough capacity to adopt a product differentiation strategy, they decided to treat the Hisense brand as the focal brand in Southeast Asia and adopted a series of distribution strategies that differed from what they had used to sell Hitachi branded products elsewhere. The (B) case provides a basis for discussing target market selection, and the establishment of varying distribution channels (exclusive vs non-exclusive agents) in different countries. This case can be used with Hisense-Hitachi Joint Venture (A): Expanding Internationally.
In June 2014, Hisense of China and Hitachi of Japan were considering whether their 11-year-old joint venture (JV) should once again assume responsibility for its international sales. After developing a solid central air-conditioner market share in China, in 2009, the JV began to sell in various overseas regions but struggled. In April 2012, the partners agreed to have a Hisense subsidiary (the HIMC) assume full responsibility for selling the JV's products overseas. However, over the next two years, HIMC's performance in selling the JV's products overseas was unsatisfactory. In response, the partners began to discuss whether they should have the JV sell its own products again overseas. Of immediate interest was the Southeast Asian market.