Danone Case Study

Great Essays
With the reform and opening up in China, more and more foreign companies swarm into Chinese market for its cheap labour prices, rich resources and high market potentials. Some of these multinational companies chose to solely invest in Chinese market, while some took the way of joint venture, while others stepped into the market by franchising. But no mater which path did they take, they all have one goal, that is to win profits and grab the market share in China. Especially in recent 10 years, the market space of western countries has been shrinking, while in the opposite, developing countries like China have been showing the powerful momentum of economic development. The door of Chiese market was gradually opened for multinational companies. …show more content…
After nearly 30 years of venture in China, Danone still performs well in Chinese market now. But Danone’s venture in China is not smooth and satisfying all the time. Some incidents were well known by people, while other episodes were not familiar to people. The market development strategy that Danone adopted in Chinese market changed a lot with the change of era. This paper is going to analyze the market development strategy of Danone in China, study how Danone applied its merger and joint venture stragty and multi-brand strategy to Chinese market in the tide of multinational business, what Danone did in order to formulate the marketing strategy, and also what Danone has went through in those years in China. These experiences are not only the precious treasure for Danone, but also the valuable lesson that all the multinational companies can learn from. In the era that the globalization is sweeping all over the world and will doom to become fiercer, it’s more vital for multinational companies to keep pace with the time and find the right development direction to gain more profits and market shares, as well as produce better products and service for the global …show more content…
They believed that the sole proprietorship Danone chose to build factories in China by itself resulted in the low profits, since it cost too much in production, Their paper divided Danone’s brands in China into three business lines: dairy products, biscuit, and beverage, and analyzed the strategy for each business line respectively. However, the current business lines of Danone in China do not have biscuit any more. Danone’s biscuit business in China was merged by Kraft. The latest business lines under Danone are fresh dairy products, waters, baby nutrition and medical

Related Documents

  • Improved Essays

    Startup Case Study

    • 702 Words
    • 3 Pages

    ack Ma, Ma Huateng and Lei Jun – three Chinese entrepreneurs behind one of the country’s most successful start-ups. The founders of Alibaba, Tencet and Xiaomi are part of the changing Chinese landscape where start-ups are beginning to be celebrated and even encouraged by officials in Beijing. Has Chine been bitten by the start-up bug for good? As China slowly started to open up its economy in the 1980s, its attitude towards business began to change. In 1997, government officials turned their attention to promoting large, mostly state-owned firms.…

    • 702 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    LVMH In China Case Study

    • 1213 Words
    • 5 Pages

    Case Study #3 – LVMH in China: Cracks Its Empire of Desire? Moët Hennessy Louis Vuitton (LVMH) is a leader in luxury products and the Chinese elite love to purchase the luxury products to flaunt their wealth and prestige. However, over the last few years, the Chinese customers have been traveling to France and other European countries to purchase their LVMH products in China are twice as expensive because the prices are lower in Europe and China has high luxury taxes and the euro is weak. With the fact that the Chinese have been purchasing more of their LVMH products outside of China, LVMH sales in China have leveled off. Counterfeiting continues to be a severe problem with high quality products like those that are offered by LVMH.…

    • 1213 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Regional trade agreements are defined as reciprocal trade agreements between two or more partners. Regional Trade Agreements are a large topic with the upcoming 2016 presidential debate. In particular, trade agreements with China have gone under extensive review in order to establish a stronger American economy. There have been many jobs revoked from American citizens due to trade agreements set up with China to outsource both items as well as materials. Through decisions made by American presidents and Chinese officials the trade agreements were established to benefit both parties and throughout many years the benefits have shifted towards a more established Chinese economy and immensely difficult economy for Americans.…

    • 1268 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Alibaba Case Study

    • 1000 Words
    • 4 Pages

    Alibaba has provided the opportunity to the SMEs in China to grow their business. The new technology has also helped the transaction cost to go down sharply. E-commerce technology by Alibaba has made it very convenient to Small & Medium Enterprises to conduct their business efficiently anywhere in the world. The total value of merchandise sold in Alibaba in 2013 was far more than Amazon and eBay combined. Branding and Image The name Alibaba was chosen as many chinese company face the problem by its foreign partners to remember the name.…

    • 1000 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    2009). Due to tremendous inflationary pressures government has imposed the credit limitationto restrain vehicle purchases. China’s fast economic growth has supported the point of view that in future more and more Chinese would purchase the car. Due to un-equal income allocation as a result of which top 20% of the China’s population would soon be able to buy vehicles. Auto analyst Mr. Zhongexpensive or cheap, the market for automobiles in China appears…

    • 714 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    This has caused the company to be unable to use their biggest strength; and ultra-efficient and technologically advanced supply chain (Salomon, 2016). Description of Walmart’s Sourcing and Logistics Strategies for Operations in China Wal-Mart 's low pricing strategy was not as well received as the company believed it would be in China. The Trefis Team (2012) argues that Chinese buyers are more concerned about the authenticity and quality of products over price. The Wal-Mart "Every Day Low Prices" has been deemed as cheap and unsafe in China. Walmart is looking to improve store productivity to improve logistic strategies in China.…

    • 1037 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The factories and new infrastructures gave work to the poor, paying them very little but more than they were originally living on. As China continues to modernize the people are adjusting as well because most if these people have been impoverished for a long time. The amount of jobs created and rise of GDP has given many Chinese lives they never thought they could have, lives that include having technology, cars, etc. China has become the world’s factory, most toys, clothes, etc. say “Made in China” this is a big deal because China’s name is spread worldwide making them globally important, the start of a super power.…

    • 1282 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    As a usual strategy of business with foreign brands in China, WHF can propose share technology and best practices of powder milk industry. In this sense, this could represent a win-win negotiation with government officials of the Communist Party. On the other hand, WHF will concentrate efforts to build trust among customers through traditional marketing strategies. In this sense, WHF will work closely with the biggest supermarket chain China Resources Vanguard Co. developing food testing and fairs. It is also important to understand the needs of customers by analyzing health claims and packaging…

    • 1027 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    Superiority Of China

    • 1170 Words
    • 5 Pages

    As the U.S. continues to demand goods from China, it will increase the value of China’s currency. Chinese workers can be paid almost nothing, but none of that will matter (Trefler 43). The value of the currency will strengthened to a point that the wages that companies pay Chinese workers will cancel out by the currency conversion (Trefler 43). In the past, countries would run huge trade surpluses to threaten the U.S., but it never mattered (Trefler 43). In this…

    • 1170 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    Wto Impact On China

    • 1080 Words
    • 5 Pages

    Generally believed by many, international trade advances economic growth and internal political changes. Since the 1980s, China has gradually shifted from a closed society based on planned economy and communist authoritarianism to a semi-open socialist society adapted to Chinese conditions. In order to further develop the country, the central government of China has taken steps to join the World Trade Organization, which arranges trade negotiations, establishes trade agreements, and resolves trade conflicts among countries (CHING et al.). The WTO membership since 2001 has improved China’s economy dramatically and pushed for a more open and transparent political government. To begin with, the journey of becoming a member of the WTO was not easy…

    • 1080 Words
    • 5 Pages
    Superior Essays

Related Topics