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WorkingPaperNO.213

WorkingPaperNO.213

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Published by: Ichbinleo on Apr 24, 2008
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05/09/2014

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Working Paper NO.213

A Case Study of Marketing Strategy
and Logistics System of Changhong,
a Chinese Home Appliances Enterprise

MAO Min\u2460\uff0cLI Ruixue\u2461
\u2460 College of Logistics, Southwest Jiaotong University, Chengdu,
610031, P.R.China; email: swjtumm@ hotmail.com
\u2461 Faculty of Economics, University of Toyama, Gofuku 3190,
Toyama, 930-8555, Japan; email: liruixue@eco.u-toyama.ac.jp
Faculty of Economics, University of Toyama, Japan
Feb., 1st, 2007
Abstract

The growing process of Changhong, a representative Chinese home appliance enterprise, is described in this paper. Changhong succeeded in transforming from a former state-run military-radar factory into China\u2019s leading consumer-electronics manufacturer. However it has been experiencing hardship since 1998 and reported significant losses in 2004. The success and failure of Changhong marketing strategy are expounded. This paper reports Changhong\u2019s recent efforts in strategy shift. It shows Changhong is attempting to integrate upstream and downstream resources, and trying to use logistics and supply chain management as competitive business weapons, faced with new challenges in the high-end products market.

Key words
Marketing strategy, Logistics system, Home appliances enterprise
Contents

1 Brief introduction to Changhong corporation: from a military factory to a home appliances enterprise......................................................................................................1 2 Process of developing business in market and products.............................................2

2.1 Process of spatial markets development..............................................................................2
2.2 Process of business diversification......................................................................................6
3 Management strategy shift\uff1aFrom economy of scale to core competence..............10

3.1 Changhong\u2019s success and failure...................................................................................... 11 3.2 Different management ideas of the two generation managers..........................................16 3.3 Marketing strategy............................................................................................................21 3.4 Technical strategy and competitive advantage..................................................................33 3.5 Organization structure.......................................................................................................36

4 Logistics Strategy and Logistics System\uff1aInternal Integration and Outsourcing....39

4.1 Logistics organization.......................................................................................................39 4.2 The introduction of logistics information system and information flow...........................40 4.3 Rebuilding of logistics network and logistics flow...........................................................45 4.4 Logistics operation management.......................................................................................46

Conclusion...................................................................................................................48

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