Abstract

The case “DJI Drones – Facing Headwinds in the US Market” is about DaJiang Innovation Technology Company (DJI), a China-based drone and aerial imaging technology company. DJI was available across the world and had authorized dealerships in over 100 countries. Even though the company was successful in other markets across the world, in the US, it faced considerable headwinds due to regulatory challenges. The case discusses the growth of DJI and its innovative aerial imaging products. The company’s technological innovation and business model are discussed in the case. The case also dwells upon the global drone market as well as the market in the US. DJI was facing a proposed ban on its drones in the US market due to security concerns. There were also reports of import restrictions on its drones due to allegations of forced labor at its manufacturing facilities. The challenges faced by the company in the US market are dealt with in the case. The case ends with the future plans for the company. How should DJI respond to the proposed ban in the US market? What were the options available for it in the US market if the ban was implemented? How can Wang overcome the challenges in the US market?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the entry strategies in international markets.
• Examine the barriers to international trade.
• Evaluate innovation as a strategy for growth.

Keywords

DJI; Drones; international trade barriers; international entry strategies; innovation; sanctions; tariff barrier; non-tariff barrier; embargoes