Danfoss' Business Strategy in China


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR220 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

International Business | Globalization Business
Case Length : 15 Pages
Period : 1994-2006
Organization : Danfoss
Pub Date : 2006
Teaching Note : Not Available
Countries : China, Denmark
Industry : Consumer Electronics

Abstract:

The case examines the 'China Strategy' of Danfoss, the Danish heating, ventilation and air conditioning equipment manufacturer. It describes the reasons why Danfoss entered the Chinese market and the initial hurdles faced by the company. Danfoss plans to make China its 'second home' after Europe. The company had been making losses in the country until 2001, after which the company broke even and started making profits. Danfoss had set a sales target of US$ 480 million in China by 2008. The case explains the strategies followed by the company to turn its operations profitable and debates whether the company will be able to achieve its 2008 revenue target or not.

Issues:

» Examine the advantages and disadvantages of doing business in China
» Study the strategies adopted by Danfoss in the Chinese market
» Analyze the future of Danfoss' operations in China
» Study the air-conditioning and refrigeration equipment industry in China

Contents:

  Page No.
Introduction 1
Background Note 2
Danfoss Enters China 3
The Initial Years 4
The China Strategy 5
The Road Ahead 7
Exhibits 9

Keywords:

Danfoss, China Strategy, Second Home Market, Business Strategy, Manufacturing Facility, Cold Food Chain, World Trade Organization, Capital Intensive Techniques, Gunaxi, Counterfeit Products Product Categories

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