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Case Details:
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Business Competition in China: Beer, PCs, Steel, TV Sets                                                                                                                                                          
Product Ref: 02/142C Company: N/A

Product Type: Case Industry: Consumer Goods
Food, Beverage & Tobacco
Technology Hardware

Related Product(s): Teaching Note
China's economic reform program has had many important impacts on business competition in the nation. In many industries, foreign competitors entered, making "strategic investments" that they believed would lose money for a significant period of time and then turn profitable. At the same time, many Chinese companies adapted to the new environment much quicker than many observers expected. Meanwhile, however, a regulatory and administrative system that created substantial uncertainty, links between the state and companies, bank lending that kept money-losing firms in business, and a rapidly changing and reforming economy made business competition in China different from business competition in many other places. The case provides vignettes of four industry sectors in China in which competition was already fierce on the eve of China's WTO accession, including beer, personal computers, steel, and television sets. The class discussion focuses on the nature of competition in the industries and the likely impact of full accession into the WTO on competition. The case allows for a discussion of the nature of uncertainty in business and for the development of tools to generate scenarios about future competition in uncertain situations.
Functional Area : Economics & Business Policy
Strategy & General Management

Issues: China, Strategic Planning, Competition
Length: 21 pages Country: China (People's Rep. of)

Pub. Year: 2002 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
This case is UGC funded.
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