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Case
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Reference no. 9B03A008
Subject category: Marketing
Published by: Ivey Publishing
Originally published in: 2003
Version: 2004-10-08
Length: 19 pages
Data source: Field research

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.
Location:
Industry:
Size:
Small
Other setting(s):
2002

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.

Settings

Location:
Industry:
Size:
Small
Other setting(s):
2002

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