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China division can skip international division to report directly to headquarters, which make the division have strong autonomy with localization. Decentralization helps local managers of Haagen-Dazs China gain effective local knowledge making accurate and sensible decisions.
Regarding the horizontal differentiation, since Haagen-Dazs focus on promotion of the product, which means its degree of diversification is relative low and with the fact that it calls for a high degree of local responsiveness, it adopts the worldwide area structure. This structure divide the market into geographic areas, allowing each area that can become an autonomous entity using its own set of value to create activities, such as human resources, according to the local conditions. With the high level of tolerance to for local adaption, local division of Haagen-Dazs China make decisions for all things through decentralization, including new place operations, new product development, franchisee selection, distribution and logistics and brand promotion, which is the most effective method of enhancing its continuous expansion in …show more content…
To some extent, a large number of customers are lost due to the high price. Facing with the competitors, maybe Haagen-Dazs can use it own high-end consumer groups to fight back. But with the opening of the superior root of the world’s largest chain of Yogen-Fruz ice cream brands laugh efficiency shopping center site in the world, Haagen-Dazs has strong pressure. Yogen-Fruz comes from Canada, and its products are to take the high road to compete, which forms the strong completion with Haagen-Dazs which comes into China nine years earlier than Yogen-Fruz. Yogen-Fruz is different from Haagen-Dazs in the Chinese market and it takes excellent efficient measures to consider to franchise in order to expand its market (Shepard, Jon. 2003) Haagen-Dazs has a consistent brand image to show people: thoughtful, distinguished, affinity, and adhere to high quality. Therefore, this mode of operation is not very
Regarding the horizontal differentiation, since Haagen-Dazs focus on promotion of the product, which means its degree of diversification is relative low and with the fact that it calls for a high degree of local responsiveness, it adopts the worldwide area structure. This structure divide the market into geographic areas, allowing each area that can become an autonomous entity using its own set of value to create activities, such as human resources, according to the local conditions. With the high level of tolerance to for local adaption, local division of Haagen-Dazs China make decisions for all things through decentralization, including new place operations, new product development, franchisee selection, distribution and logistics and brand promotion, which is the most effective method of enhancing its continuous expansion in …show more content…
To some extent, a large number of customers are lost due to the high price. Facing with the competitors, maybe Haagen-Dazs can use it own high-end consumer groups to fight back. But with the opening of the superior root of the world’s largest chain of Yogen-Fruz ice cream brands laugh efficiency shopping center site in the world, Haagen-Dazs has strong pressure. Yogen-Fruz comes from Canada, and its products are to take the high road to compete, which forms the strong completion with Haagen-Dazs which comes into China nine years earlier than Yogen-Fruz. Yogen-Fruz is different from Haagen-Dazs in the Chinese market and it takes excellent efficient measures to consider to franchise in order to expand its market (Shepard, Jon. 2003) Haagen-Dazs has a consistent brand image to show people: thoughtful, distinguished, affinity, and adhere to high quality. Therefore, this mode of operation is not very