Danfoss' Business Strategy in China
ICMR HOME | Case Studies Collection
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges
» Business Strategy Case Studies
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
The company had a lot at stake in China and plans to make the country its 'second home' after Europe. Danfoss had already invested more than US$ 100 million in China by 2005 and built a factory in Tianjin Wuqing Development Area (Wuqing). It had shifted some of its manufacturing facilities from Denmark and other regions to China. The Wuqing factory had become the manufacturing hub for Danfoss in the Asia-Pacific region.
In the 1940s, DCTAF expanded its operations in Europe by appointing dealers in Belgium, Norway, Sweden, the Netherlands, England, Norway and Spain. In 1946, the company's name was changed to Danfoss for convenience, especially in the international markets. In the same year, a new office with 261 employees was opened in Copenhagen.
6] On October 1929, the New York Stock Exchange witnessed a sudden fall in the stock prices and the fall continued till the next three years. By 1932, the value of the stocks was about 20% of what they were in 1929. This ruined many investors and banks and about 11,000 of the total 25,000 US banks were affected. This resulted in low consumer spending which reduced production leading to an overall economy downturn. This was referred to as the Great Depression and it also affected Europe and the colonies of European powers. The depression ended in 1939.
Case Studies Links:-
Short Case Studies,
Simplified Case Studies.