Investors had lost confidence in Chinese smartphone maker Xiaomi. It was once one of the world's most valuable private technology companies, valued at USD45bn after four years of operation. With Xiaomi, founder Lei Jun had created an internet company with an online business model that made tech-driven products with minimal margins. It focused on building value around the phone with products and services. Consumers quickly became fans. In 2014, Xiaomi became China's best-selling smartphone brand and also the world's third largest. Investors anticipated continued growth. But the excitement around the company did not last long. In 2016, Xiaomi's overall smartphone shipments fell 36% from the previous year after a series of supply chain issues. To revive investor confidence, Lei adjusted the company's strategic direction and led a series of internal restructurings. Its long-awaited IPO in 2018 was priced at the bottom of the range and raised USD4.7bn, less than half of its initial target. Worse, six months after the IPO, the company's market capitalization had dropped by half. According to some analysts, the company had been "overhyped" and Xiaomi was "just a hardware company." But the image of Xiaomi as a value-for-money brand stuck. Some even gave it the nickname "assembly house." What could Xiaomi do to revive the confidence of investors?
Yalia, a Chinese tech company that is experiencing rapid expansion overseas, has been sending more expatriates on assignment in recent years, but its approach to global mobility has not caught up. Managers are not strategic about the expatriation process. Existing mobility policy guidelines are unclear and has not been adjusted to address the company's expansion needs. Xiao Jing, the new human resources director at Yalia, is becoming frustrated with the outdated approach as she deals with a recent complaint from a Chinese mid-level manager, Fan Kewen. Fan, the head of Dubai's office, thinks it is unfair that his housing budget is lower than that of his US colleague from a newly acquired cloud solutions company, and he threatens to shorten his assignment. As she investigates further, she uncovered the difficulties of Fan working in a foreign culture, as well as differences in cultural and policy practices at Yalia and the acquired company. Jing suggests to Liu Hong, head of global strategy and managing director about a policy overhaul, but Hong dismissed, and instead asks her to use monetary incentives to keep assignees happy. What should she do? The case demonstrates how global mobility policies need to consider operational needs, business strategy and talent strategies. It breaks down the components of an expatriate package, and shows how culture can play into its design. It also shows the impact of having a well-structured, strategic approach to managing mobility programs.
With hundreds of suppliers providing a medical inventory that delivers medicine to nearly 4 million patients a year, Shanghai General Hospital is looking for new ways to improve its medical supply chain. The current system not only takes up too much of pharmacists' time for menial stock-taking duties, but is also labor intensive and prone to error. Wang Xingpeng, the hospital's chief executive, wants to better utilize medical professionals' time and allow pharmacists to do more clinical work for patients. Further complicating the issue is a new set of government rules that will require hospitals to sell medicine at cost, meaning that what was once an income source will soon become a cost burden. The hospital is planning to establish a new supply system with one of its suppliers, Shanghai Pharmaceutical. How should the new system address existing issues? And as Wang reviews the strategic partnership, how can he align the new partner's interests with the hospital's objectives? This case demonstrates the components of a medical supply chain in a hospital and the challenges associated with managing such a supply chain. It allows students to discuss ways to streamline the supply chain. The case can also be used to explore topics in strategic partnerships, in particular, vendor-managed inventory systems, and offers background for discussion of the risks and considerations when introducing a third- party strategic partner into the supply chain.
Shipping conglomerate and industry leader Maersk Group has to figure out a strategy to remain competitive in the struggling shipping industry. In the face of sluggish global trade, overcapacity in the shipping industry and falling freight rates, the company has managed to stay afloat by conducting cost cuts and operational improvements. But the strategic direction ahead is not clear. And to further complicate the issue, its other major revenue stream in the oil and gas business isn't doing well either. Falling oil prices has severely affected the profitability of its upstream oil and gas division. Søren Skou, recently appointed CEO of the company, now has to forge a new strategic direction for Maersk. Should he look into M&As, alliances, or even dispose of the oil business? How can he further differentiate Maersk and create a competitive strategy for sustainable growth? This case explores the strategic options of a market leader in a competitive dilemma. It touches upon concepts of alliance, M&A, differentiation, horizontal diversification, vertical integration, and technology adoption. It also looks into the issues of companies operating in China, where state-owned firms are incentivized to adopt cross-subsidization.
Ten years after expanding abroad, Chinese telecommunications equipment maker Huawei faces espionage accusations from the US government, a claim that has shut it out of most of the US market. Now the threat has started to hinder potential deals in Canada, a market it entered only four years ago. This is a market where it has gradually built a market presence with a strategic focus vital to its global research initiatives. Sean Yang, president of Huawei's Canadian operations, must now reaffirm the company's commitment to Canada and regain its customers' trust. This case focuses on the changing competitive landscape in the global and regional environment, and describes the constraints on and advantages of an emerging-markets multinational operating in developed markets. It can also be adopted for teaching external analysis, including PESTEL, five-forces, driving-forces and key success-factor analyses.
On a mission to give "hope, chance and choice" to underprivileged students, Erwin Huang started the social enterprise WebOrganic to sell quality computers and internet services to students at below-market prices. In its first year of operation, the company had already served more than 7,000 low-income families, and had expanded from being a technology distributor to becoming a provider of a full-fledged service surrounding online learning. Now entering its second year, WebOrganic continues to face resistance from parents and educators in e-learning adoption as it introduces tablet computers to its product mix. This case is about creating a blue ocean in the overlapping zones of the computer and internet services retail market and a growing e-learning market. It explores ideas pertaining to the design and execution of a blue ocean strategy; including such topics such value innovation, the four actions framework and tipping point leadership. The case also touches on concepts of strategic relationship management and social entrepreneurship.
For Chinese corporation Haier Inc, the biggest seller of major appliances in the world, entering India as an emerging market multinational is like having a double-edged sword. Its global presence gives it credibility to offer more sophisticated products that warrant a premium price, but Indian consumers have yet to develop the willingness to embrace its China-made, high-priced products. Seven years into its India business endeavours, sales remained sluggish and market share minimal. The company then undertook a swift change in pricing strategies and overhauled its marketing infrastructure to save its market. The case provides an overview of the situation and lends a discussion of marketing and localisation strategies of emerging market multinationals in India. It also gives insights into the challenges these multinational corporations face. The case also explores issues of product offerings, brand communication, pricing strategies, market capture and late-comer disadvantages. The comparison between Haier's behaviours in India and other markets also points to the level of localisation/globalisation the company adopts across markets.