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ISSN: 2045-0621

Online from: 2011

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The Hangzhou Wahaha Group: an insight into diversification strategy of China's private enterprises


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Title:The Hangzhou Wahaha Group: an insight into diversification strategy of China's private enterprises
Author(s):Linyi Li (Student at Shanghai University of Finance and Economics, Shanghai, China), Lulu Xia (Student at Shanghai University of Finance and Economics, Shanghai, China), Menglei Liu (Student at Shanghai University of Finance and Economics, Shanghai, China), Yunzhi Ling (Student at Fudan University, Shanghai, China)
Citation:Linyi Li, Lulu Xia, Menglei Liu, Yunzhi Ling, "The Hangzhou Wahaha Group: an insight into diversification strategy of China's private enterprises", Emerald Emerald Emerging Markets Case Studies, (2011)
Keywords:Beverage diversification, China, Entrepreneurialism, Marketing, Strategy
Article type:Case study
DOI:10.1108/20450621111186156 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Acknowledgements:Disclaimer: This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.
Abstract:

Title – The Hangzhou Wahaha Group: an insight into diversification strategy of China's private enterprises.

Subject area – Strategic Management, Entrepreneurship, Business Management.

Study level/applicability – This case is of medium level of difficulty and is designed for students in School of Economics and Business Management, also an optional course for students in other majors who have strong interest in strategic management and entrepreneurship. Students from all disciplines are welcomed and encouraged to take this course; however, it will be better if registered students have already gained basic ideas about industry, company analysis and marketing.

Case overview – In 2010, Hangzhou Wahaha Group (The Group), a leading Chinese beverage company launched its new brand – Edison milk powder. Meanwhile, people were concerned about food security because of several scandals and Wahaha had to convince the mass public during the high time. The decision makers had to balance various options besides Edison. In this case, we would mainly discuss several possible long-term strategies of this eye-catching private enterprise. The Group intended to carry out diversification strategy in several industries domestically and internationally to maximize its profit.

Expected learning outcomesHave an insight into China's beverage industry and dairy sector, with the representative Hangzhou Wahaha Group. Know how to develop analytical and decision skills facing multi-choices. SWOT model is recommended here. Have a comprehensive understanding of diversification strategy and how to make priorities.

Supplementary materials – Teaching notes.


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