Danfoss' Business Strategy in China
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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.
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Case Details: |
Price: |
| Case Code |
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BSTR220 |
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra
ThemesInternational
Business | Globalization Business
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| Case Length |
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15 Pages |
| Period |
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1994-2006 |
| Organization |
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Danfoss |
| Pub Date |
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2006 |
| Teaching Note |
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Not Available |
| Countries
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China, Denmark |
| Industry |
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Consumer Electronics
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Abstract:
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The case examines the 'China Strategy' of Danfoss, the Danish heating,
ventilation and air conditioning equipment manufacturer. It describes the reasons
why Danfoss entered the Chinese market and the initial hurdles faced by the
company. Danfoss plans to make China its 'second home' after Europe. The company
had been making losses in the country until 2001, after which the company broke
even and started making profits. Danfoss had set a sales target of US$ 480
million in China by 2008. The case explains the strategies followed by the
company to turn its operations profitable and debates whether the company will
be able to achieve its 2008 revenue target or not.
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Issues:
» Examine the advantages and disadvantages of doing business in China
» Study the strategies adopted by Danfoss in the Chinese market
» Analyze the future of Danfoss' operations in China
» Study the air-conditioning and refrigeration equipment industry in China
Contents:
Keywords:
Danfoss, China Strategy, Second Home Market, Business Strategy, Manufacturing
Facility, Cold Food Chain, World Trade Organization, Capital Intensive
Techniques, Gunaxi, Counterfeit Products Product Categories
Danfoss'
Business Strategy In China
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