Subject category:
Marketing
Published by:
Ivey Publishing
Version: 2004-10-08
Length: 19 pages
Data source: Field research
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Abstract
Zhongda Optical Cable Engineering Company is a small company that provides optical cable engineering services to contractors who are installing intranet applications in a province in China. As an early entrant in the market and a high quality service provider, the company had been able to charge premium prices, however, the market has changed. There are now many competitors who provide similar services. Furthermore, contractors - and sometimes end-users - were learning how to do Zhongda''s major task, optical cable welding, for themselves. Zhongda has three options: aggressively target end-user accounts; retreat from cable engineering services and focus on distributing cable components or start manufacturing optical cable welding machines. None of these is a perfect match for Zhongda''s capabilities, but the prospects for continued prosperity in its current role are bleak.
About
Abstract
Zhongda Optical Cable Engineering Company is a small company that provides optical cable engineering services to contractors who are installing intranet applications in a province in China. As an early entrant in the market and a high quality service provider, the company had been able to charge premium prices, however, the market has changed. There are now many competitors who provide similar services. Furthermore, contractors - and sometimes end-users - were learning how to do Zhongda''s major task, optical cable welding, for themselves. Zhongda has three options: aggressively target end-user accounts; retreat from cable engineering services and focus on distributing cable components or start manufacturing optical cable welding machines. None of these is a perfect match for Zhongda''s capabilities, but the prospects for continued prosperity in its current role are bleak.