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Case
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Reference no. 9B19MC010
Simplified Chinese language
Published by: Ivey Publishing
Originally published in: 2019
Version: 2019-02-11
Revision date: 16-Oct-2019

Abstract

This is a Simplified Chinese version. The chief executive officer of Dalian Zhangzidao Chuo Cold Logistics Co, Ltd, a Chinese company that specialized in cold chain storage and logistics services for imported frozen aquatic products supply chain, faced a series of urgent decisions. Since beginning operations in 2014, the company's business volume had increased faster than other enterprises in the industry. However, in 2017, the company still faced the typical dilemma of enterprises in its industry-a lower net profit margin. As a middle link in this supply chain, the company was in fierce competition with upstream suppliers, downstream buyers, and horizontal competitors. The chief executive officer faced some tough choices: Was the company capable of implementing a vertical integration strategy to enhance its competitive advantages? If so, should the company pursue forward integration or backward integration? And how could the company achieve vertical integration, given its current circumstances?
Location:
Size:
Small
Other setting(s):
2017

About

Abstract

This is a Simplified Chinese version. The chief executive officer of Dalian Zhangzidao Chuo Cold Logistics Co, Ltd, a Chinese company that specialized in cold chain storage and logistics services for imported frozen aquatic products supply chain, faced a series of urgent decisions. Since beginning operations in 2014, the company's business volume had increased faster than other enterprises in the industry. However, in 2017, the company still faced the typical dilemma of enterprises in its industry-a lower net profit margin. As a middle link in this supply chain, the company was in fierce competition with upstream suppliers, downstream buyers, and horizontal competitors. The chief executive officer faced some tough choices: Was the company capable of implementing a vertical integration strategy to enhance its competitive advantages? If so, should the company pursue forward integration or backward integration? And how could the company achieve vertical integration, given its current circumstances?

Settings

Location:
Size:
Small
Other setting(s):
2017

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