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A businesswoman owned two franchised stores of Carpenter Tan Handicrafts Co., Ltd. (Carpenter Tan) in Panjin City, China. Carpenter Tan was a leader in the wooden crafts industry. When the first franchised store was set up in 2012, she was excited by and satisfied with Carpenter Tan's franchise model. However, after her second franchised store was set up in 2014, she felt that this franchise model was restricting her development and autonomy. In 2016, Carpenter Tan suggested that the businesswoman open a third franchised store in Panjin, where the wooden crafts market was close to saturation. The businesswoman, who had become dissatisfied with Carpenter Tan's franchise model, faced a tough choice about whether she should set up the third franchised store.

A businesswoman owned two franchised stores of Carpenter Tan Handicrafts Co., Ltd. (Carpenter Tan) in Panjin City, China. Carpenter Tan was a leader in the wooden crafts industry. When the first franchised store was set up in 2012, she was excited by and satisfied with Carpenter Tan’s franchise model. However, after her second franchised store was set up in 2014, she felt that this franchise model was restricting her development and autonomy. In 2016, Carpenter Tan suggested that the businesswoman open a third franchised store in Panjin, where the wooden crafts market was close to saturation. The businesswoman, who had become dissatisfied with Carpenter Tan’s franchise model, faced a tough choice about whether she should set up the third franchised store.

Founded in 2012 in Dalian, Liaoning Province, China, Dalian Venture Workshop Technology Service Co., Ltd. (Venture Workshop) was a business incubator that provided early stage start-ups with incubation and investment services. In 2014, China identified Venture Workshop as a “state-level technology business incubator.” By 2017, Venture Workshop had become the largest incubator in Northeast China. However, behind its prosperity, it had faced years of losses. Since its establishment in 2012, its only source of income was the fees it charged for renting office space to start-ups. Its standard rates were far lower than market prices, which made it difficult for Venture Workshop to generate sufficient income. In February 2018, the chairman of Venture Workshop needed to increase Venture Workshop's income and avoid subsequent years of losses. What was the best strategy to pursue?

Ziwo Agricultural Service Co. Ltd. (Ziwo), located in the city of Shenyang in Liaoning Province in northeastern China, was a market leader in sales of agricultural materials. In 2006, China began changing how cropland was distributed and used. Over the next few years, decentralized, small farm households gave way to larger, more centralized, family farms. The change undermined Ziwo’s business, driving it into a sharp decline in market share and income from 2008 to 2011.<br><br>In December 2011, the company considered integrating the supply chain vertically to survive the decline. Was this move necessary, and if so, which direction should the vertical integration strategy take—forward or backward? How could Ziwo even achieve vertical integration under its current circumstances? Finally, would vertical integration help Ziwo deal with an emerging threat from Chinese Internet retailers that were entering the agricultural supply chain?

Ziwo Agricultural Service Co. Ltd. (Ziwo), located in the city of Shenyang in Liaoning Province in northeastern China, was a market leader in sales of agricultural materials. In 2006, China began changing how cropland was distributed and used. Over the next few years, decentralized, small farm households gave way to larger, more centralized, family farms. The change undermined Ziwo's business, driving it into a sharp decline in market share and income from 2008 to 2011. In December 2011, the company considered integrating the supply chain vertically to survive the decline. Was this move necessary, and if so, which direction should the vertical integration strategy take-forward or backward? How could Ziwo even achieve vertical integration under its current circumstances? Finally, would vertical integration help Ziwo deal with an emerging threat from Chinese Internet retailers that were entering the agricultural supply chain?