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Sincerity: Chinese Branded Motorcycles in Africa

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Sincerity International Group is a Chinese company set up in 2003 by Dr. Zhang Lian, an alumnus of The University of Hong Kong (HKU), to tap Africa’s demand for two-wheelers. The case provides an overview of the motorcycle market in Africa, its features and characteristics, and the threats and opportunities the region presented. It explains how Dr. Zhang Lian, the founder, crafts an uncontested market space by leveraging China’s mature supply chain to create a branded line of motorcycles, accessories, and service, integrating product design, manufacturing, sales and marketing, distribution and logistics, aftersales service, and maintenance. It aims to (1) understand how Sincerity uses “blue ocean” strategy for growth and achieves phenomenal success; (2) identify the key reasons for Sincerity’s rapid development; (3) identify the major challenges thereafter, and (4) evaluate strategies for Sincerity to sustain growth.

Learning Objective:

The teaching objectives of the case are:

  1. To provide students with a basic understanding of the motorcycle market in Africa and an evaluation of the impact of external factors on the industry and market players.
  2. To explore the opportunities and challenges associated with the motorcycle market in Africa and how Sincerity formulates its competitive strategy for growth.
  3. To offer an opportunity to discuss and evaluate the various strategic options for growth.

 

Year of Publication: 2024
Ref. No.: 24/791C
Discipline: Strategy & General Management
Industry: Automobiles & Components
Country: Africa
Company: Sincerity International Group
Languages: English
Pages of Text: 12