China case studies

Costa coffee- Joint Venture with Yueda Group.and Beijing Hualian Group.Localised products to suit tastesGrowing a 30% a yearBreakeven potential in 2014.planned to have 300 stores throughout China

 KFC- Sales had fallen 15% due to suppliers giving chicken an excessive amount of antibiotics. 2014- Sales at outlets in China rose 9% from a year ago, with those at KFC up 11%.

Tesco-Paid £345m for 20% stake in a joint venture with CRE's Vanguard. Failed alone before the joint venture.

Foxconn- Apple contract is 70% of foxconn's work.Foxconn also supply to Sony, Nokia, and Microsoft.13 employees committed suicide at the Chinese factory.

Mattel- Invested $30m in 2008.Failed in China as there were cheaper alternatives.To address this problem the adapted their products to make an educational and violin Barbie.

Danone- Joint venture with Bright Dairy.Holds 0.5% of market shareChina did not trust the brand. Danone bribed a hospital to use their milk.

Nike- Revenue from China is 11.4% of total revenue. Nike are the leading sportswear brand in China with 7000 stores.

Apple- Made a deal with China Mobile when launching the 5S and 5C. When the ipohone was launched sales increased by 67.4%.

Dyson- Lost market share in China, lower sales due to cheapers alternatives (counterfeits) Lost some court cases in China due to bias.Launched full range of products in 2012.

Facebook- Banned in 2009 for activists planning a meeting on Facebook, Competition from Chinese equivalent- RenronNow operates in Shanghai trade free zone.

Jaguar-Land Rover- Joint venture with Chery for $1 billion.Sales up 14% in 2014.Originally exported to China from UK production but now manufactures since joint venture.

Spirax-Sarco- Opened new facility in China in 2012. had a 12% rise and profits ha ve increased in 2013 to £151.1 million.

Ikea- Originally struggled in China but once they changed the store layout it became much more popular but is still a luxury brand as its expensive.

Huawei- Became largest smart phone and IT solutions provider in China and saw an increase in revenue of 240 billion Yuen

Google- Banned in China due to political issues so pulled out. Google then reopened in 2012 and only had 0.35% market share.

Unilever- They enhanced research and development segment of the business and had a large scale organisational restructuring to anticipate the needs wants of Chinese customers.

Burberry- Used a franchise method to enter China and once fully established purchased all of the chains back. Faced counterfeit issues so used US courts to win compensation of $60 million.

Nokia- China was one of Nokia's biggest markets in the 1990's and initially was very successful but now Nokia only have 1% market share.

Volkswagen- They had 2 local joint ventures but entered over 30 years ago alone. There success in China made them move production over.

Starbucks- Entered China alone but was not originally successful as they charged too high a price, so they adapted their food and drinks to suit local tastes and under went an expansion strategy to open new stores.

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