In 2016, the chief executive officer (CEO) of Feihe International Inc. (Feihe), the manufacturer of a leading infant formula brand in China, was considering whether his company should enter Canada. Although the company would be challenged by the Canadian dairy industry’s unique supply management system, Canada was eager to attract foreign investment and the CEO needed to overcome the intense domestic competition in China’s infant formula market. The CEO needed to decide on an integrated strategy to enter Canada. Should he pursue a greenfield strategy, an acquisition, or a joint venture?
The chief executive officer of Dalian Zhangzidao Chuo Cold Logistics Co., Ltd., a Chinese company that specialized in cold chain storage and logistics services for imported frozen aquatic products supply chain, faced a series of urgent decisions. Since beginning operations in 2014, the company’s business volume had increased faster than other enterprises in the industry. However, in 2017, the company still faced the typical dilemma of enterprises in its industry—a lower net profit margin. As a middle link in this supply chain, the company was in fierce competition with upstream suppliers, downstream buyers, and horizontal competitors. The chief executive officer faced some tough choices: Was the company capable of implementing a vertical integration strategy to enhance its competitive advantages? If so, should the company pursue forward integration or backward integration? And how could the company achieve vertical integration, given its current circumstances?
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.