Danone Case Study

1622 Words 7 Pages
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

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