Yushan case new
Download as PPTX, PDF2 likes7,637 views
Yushan Bicycles, a Taiwanese bicycle manufacturer, established subsidiaries in Asia, Europe, and Australia as part of its international expansion plan. Yushan Australia (YA) was experiencing quarterly losses due to issues with hiring staff, warehouse space, and delayed deliveries compared to other subsidiaries. The document identifies problems with YA's sales and supply chain strategies and lack of trust between YA and headquarters. It provides recommendations for YA to target new customer segments in Australia, improve communication between subsidiaries, and give Hamilton more time to implement his strategies to prove effectiveness.
Yushan case new
- 1. Yushan Bicycles: Learning to Ride Abroad
- 2. Introduction & Case summery “Yushan” Taiwan's no 7 bicycle manufacturing company. Established in 1985 by two semi professional cyclist. Known for their straight line design and compact size. Started producing E-cycle in 2007 International Strategy - 3 Phase expansion plan created due to slowdown of domestic Market Asia Market Europe Market Oceania Market – Yushan in Australia (YA)
- 3. - Problem started with Quarterly loss in Yushan Australia YA was in a loss for some common technical and planning issue. Hiring Staff, Lease office, Ware house space Delivery delay for YA than Asia and Europe. Inner system problem for stock recording. Transfer pricing and currency fluctuation. Knowledge on Australian Market Introduction & Case summery
- 4. Financial data of the Company
- 5. Identification Of Problems How to develop sales and product strategy for Yushan Australia to grow profit and capture market share. How to develop a better and on time supply chain system so there will be no delay for the delivery of the product in the subsidiaries. How Hamilton can cultivate trust between him and the Head Quarters so he can implement his own strategy and prove that his plan took time but was effective.
- 6. Challenges of Yushan Struggle to gain market share within Europe. Transfer price to the Australian subsidiary. It could not raise local price to match transfer cost. Lack of trust in Australian subsidiary from Taiwan’s head management. Lack of communication among the different subsidiaries. Currency fluctuation
- 7. Challenges of Yushan Motivation - customers seeking bicycles at reasonable price and willing to pay more for additional attributes and performance. Organization Culture - Consumers of all over the world are not same at their thinking. Consumers perception - Consumers of Australia are so health conscious & they used to sweating themselves. Controlling - the profitability of its Taiwan based operations ahead of that of offshore subsidiaries Company Performance - Hamilton’s penetration strategy that increase the sales volume for low price which will help to capture the market share.
- 8. Strengths Leading International Bicycle Company Penetrated to the global market Reasonable control over production and distribution due to backward and forward integration Weakness Major dependence on the market as the country of origin market Despite being in operation for decades, has standard procedures and regulations for all portfolio items Immutability possible by competition Opportunities New South Asian and Asia Pacific regions available for expansion – emerging markets Acquisition of medium-sized similar companies and shops in developing countries Threats Increased marketing from competing players, which might affect sales negatively An increasing number of independent producers and marketers Increased and saturating competition SWOT
- 9. Solution and Recommendation Yushan Australia seems to focus more on price advantage as the main competitive advantage. Instead they should have proper marketing plans to target and position its products to different market segments in Australian bicycle market. I. Select the target market segment II. Develop the marketing plan to address the target market III. Position the product well in order to gain higher profits
- 10. Solution and Recommendation We propose to target E-Bicycle for the women segment in Australia. I. In Japan mostly women liked it. So it was successful in Japan. II. We can give the green concept for the women by saying " Buy Yushan E-bike and make a future world that where your child can breath freely.
- 11. Solution and Recommendation Let's promote high end bicycle to children who use bicycle for daily school travel. I. Promote Yushan as a safe bicycle for children with some added safety feature. II.Address the market segment of parents and say "Give your child the safest bike to go to school." III.or "Your kid will not break it since it has the most durable materials"
- 12. Solution and Recommendation For Hamilton(General Manager, Yushan Australia) I. Providing various offers like discounts, gift vouchers to attract the customers. II. Price must be reduced up to certain limits for those models which people are not liking to purchase. III. The transfer price conflicts - He needs to work on developing the accurate forecasts and operate to achieve a breakeven.
- 13. Solution and Recommendation For Chih-hao Zonghan (Director, Sales & Operations) I. He must suggest Hamilton to incorporate the possibility of transfer price increase during the next negotiation. II. He should make efforts to train the staff of YA in terms of training them to operate the ERP system, marketing the products, dealing with customer issues and negotiating with the clients. III. He must share and discuss the problems with all the subsidiary managers. IV.Hamilton and his team must get little bit more time for proving themselves.
- 14. Solution and Recommendation For Yushan Headquarters I. There must be open communication between the employees(staffs) and the managers for better understanding of market. II. New suggestions from anyone at any level must be welcomed. III. IHRM is a vital component of implementing the global strategy of a firm. IV. Companies goals and objectives must be clearly defined. V. They should draw attention on the efficient production.
- 15. Conclusion Yushan need to maintain all his subsidiary autonomy and adapt the cultural aspects for entering into the market. This company needs to hire a sales manager and regional manager who is already having experience in the country. So, they can managed easily. Company need to reorganise for reflecting similar product and organisational culture of the country but price strategy does not favoured to establish market and falling subsidiaries.
- 16. Thank you ……!!!