Subject category:
Strategy and General Management
Published by:
Ivey Publishing
Version: 2021-06-23
Length: 8 pages
Data source: Field research
Abstract
When the outbreak of COVID-19 in early 2020 affected commercial circulation in various regions around the world, Heilongjiang Feihe Dairy Co Ltd (Feihe), a leading Chinese dairy company, had been facing difficulties for a while. The company's enterprise strategy was actively adjusted, and various measures were taken to protect the company's supply of raw materials and the business operations of its production, distribution logistics, sales, and other departments from adverse effects of the pandemic in the first quarter of 2020. Feihe announced that its revenue growth rate in the first quarter of 2020 would not be less than 30 per cent. However, due to the impact of COVID-19, the pattern of competition among milk powder brands had quietly changed. Although Feihe had successfully gained a share of the high-end market, which had previously been dominated by foreign brands, its proportion of this market was still not high. At the same time, the rapid rise of other domestic brands had disturbed Feihe's brand appeal of being 'more suitable for Chinese babies' and its claim that its sales were far ahead in China. How should Feihe further adjust its strategy to properly deal with its competitive relationship with other brands?
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Abstract
When the outbreak of COVID-19 in early 2020 affected commercial circulation in various regions around the world, Heilongjiang Feihe Dairy Co Ltd (Feihe), a leading Chinese dairy company, had been facing difficulties for a while. The company's enterprise strategy was actively adjusted, and various measures were taken to protect the company's supply of raw materials and the business operations of its production, distribution logistics, sales, and other departments from adverse effects of the pandemic in the first quarter of 2020. Feihe announced that its revenue growth rate in the first quarter of 2020 would not be less than 30 per cent. However, due to the impact of COVID-19, the pattern of competition among milk powder brands had quietly changed. Although Feihe had successfully gained a share of the high-end market, which had previously been dominated by foreign brands, its proportion of this market was still not high. At the same time, the rapid rise of other domestic brands had disturbed Feihe's brand appeal of being 'more suitable for Chinese babies' and its claim that its sales were far ahead in China. How should Feihe further adjust its strategy to properly deal with its competitive relationship with other brands?