finalreport——goodbaby

1、a. introduction 1. company overview the goodbaby group was founded in 1989. adhering to the principle of caring for children, serving families, giving back to society and dedicated to the commitment of improving childrens living environment and living standards, the group engages in the development,

2、 manufacture and distribution of baby products in both domestic and international markets. after two decades of growth, the group is now one of the worlds leading players in the baby products industry and the name goodbaby is one of chinas most famous brand the worlds mother -infant product manufact

3、urer, it owns chinas biggest professional distribution and retail platform of baby products. in the field of strollers in particular, it leads the world in terms of both innovation and fashion. products goodbaby offers a full array of more than 2,000 baby products in 16 categories, including strolle

4、rs, car seats, bouncers, walkers, electric ride-on car, bicycles, sliding boards, high chairs, swings, play yards, baby bedding and clothes as well as nursing, feeding, hygiene, bathing and safety articles. popular in china, these products are now sold throughout the world. market according to the r

5、esults of a market survey made by frost & sullivan, the market share for goodbaby s baby strollers is 68%, 40% and 13% respectively in the worlds three major markets china, usa and europe. in other words, out of every 1,000 baby strollers in these three regions, 435 come from goodbaby. office lo

6、cation kunshan, jiangsu s sizethe total assets of the goodbaby group is about ￥ billion . goodbaby currently has more than 20,000 employees in the branches and agencies around the world. markets currently, more than 70 countries and regions in the world people can find goodbaby. region country asia

7、china,japan,india,southeast asia europe rus, holand,germany,uk,italy north america usa,canada south america peru, colombia the middle east bahrain, israel africa egypt australia australia in the countries mentioned above country fdis usa subsidiary company , r&d center uk r&d center,sale off

8、ice holland r&d center italy subsidiary company , r&d center japan r&d center,sale office b. management management orientation b. polycentric in the oversea market, goodbaby is only doing suppliers and early as the 1990s, goodbaby began to re- orient its future development towards the wo

9、rlds major markets, such as usa and europe, in line with of the companys globalization deploy its r&d syste m with global and strategic perspectives, it has decided to make the r&d center in kunshan, china, as its global r&d base, from which it extends its feelers into usa, europe and a

10、r&d system with kunshan, china as the base and three frontier centers in boston, usa, utrecht, holland and tokyo, japan are established to implement research programs in fields like consumer research, market survey, fashion innovation, design and research. of internationalization a. geography ex

11、pansion i. geography expansion 1994 ，american subsidiary company was set up. 1996 ，“papa rock and mama rock ”entered toys”r ”us,wal-mart and other major retail channels. 1999 ，market share of goodbaby strollers rose to % and sales volume ranked no.1 in the . 2003 ，the group launched the thunder proj

12、ect as an effort to enter the european market by making products to meet its special needs. 2007 ，globe clairs products a brand name of the groupbegan entering japan. ii. expand pattern developing pattern: from more developed countries to less developed countries. and from further countries to neigh

13、boring countries. b. product lines expansion i. product lines expansion goodbaby move into the us market at first. it focused upon the niche market baby strollers. 1999，market share of goodbaby strollers rose to % and sales volume ranked no.1 in the . with this success, goodbaby looked to make furth

14、er inroads in the north american market by moving into the children toys. goodbaby continued its expansion into other international markets as well. production facilities were constructed in europe in 2003 and japan in 2007. and now goodbaby have 16 categories, more than 2000 baby products. there ar

15、e strollers, car seats, bouncers, walkers, electric ride-on car, bicycles, sliding boards, high chairs, swings, play yards, baby bedding and clothes as well as nursing, feeding, hygiene, bathing and safety articles. ii. expand pattern 1. 1989 china 35 subsidiary companies over 4,000 franchises retai

16、l outlets 2. 1994 us enter toysrus, wal-mart and other major retail channels c. functional migration expansion i. functional migration 1994 subsidiary company 1995 r&d center 1996 brand-sharing alliance with cosco and create a brand together, called“cosco geoby ” 1996 marketing enter wal-mart an

17、d other major retail channel ii. follow the same pattern italy ：2003 ，sales plans r&d center subsidiary albania ：2004 ，marketing r&d center distribution uk: 2005,r&d center marketing japan ：2007 ，marketing r&d center distribution and localization pressure globalization pressures i fr

18、eer trade fierce competitionwhen it comes to freer trade, the first thing occurred to our minds is more companies, more industries rivals and of course, larger marketing. however, thus things will lead to fierce competition, which means adverse external environment. . korea house baby .it was establ

19、ished in 2003 in beijing, through unremitting efforts to build chinas largest and most advanced professional nursery product retailers. set product catalog sales, chain stores, online shopping, comprehensive child care services as one of the establishment of a new service model, so that become famil

20、y treasure of chinas fastest-growing nursery industry leader. it s one of the competitors against with goodbaby communication pressure when a company can monopolize a market, its unimportant to have a good communication with other parts in the market. however, in freer trade, better communication me

21、ans bigger market and more competitive than other companies, especially in infants industry.high quality and low cost pressuremore same type companies will contribute to all forms of competition, high-end competitions are found expression in high quality, on the contrary, the low-end competitions ar

22、e represented to low price or cut-throat competition. a ripe industry finally will form a customer- oriented sense of worth. and reach the target of high quality and low cost. ii global financial services & capital markets credit crisis a credit pressure is an economic condition in which investm

23、ent capital is difficult to obtain. a credit crisis makes it nearly impossible for companies to borrow because lenders are scared of bankruptcies or defaults, which result in higher interest rates. potential crisis of the split of company fund chain the circulation of the fund chain to a company is

24、what the circulation of the blood to a man. only the circulation of the fund is normal, can the company be healthy. according to the latest statistics, 80% company go bankrupt because of split of company fund chain, as the result, couldnt pay less attention to the company fund chain. inflation and t

25、he change of interest rate pressure the possibility that the value of assets or income will decrease as inflation shrinks the purchasing power of a currency. inflation causes money to decrease in value at some rate, and does so whether the money is invested or not. high interest may mean the company

26、 is difficulty loaning fund from the bank, while the low interest may call for more efforts in fund raising. following a period of economic boom, a financial bubbleglobal in scopehas now burst. the extent of this problem has been so severe that some of the worlds largest financial institutions have

27、collapsed. others have been bought out by their competition at low prices and in other cases, the governments of the wealthiest nations in the world have resorted to extensive bail-out and rescue packages for the remaining large banks and financial institutions. iii advances in communications techno

28、logy advance in computer and fax technology have made communication easier and less costly that satisfied the demand of extensive communication of the goodbaby. video conference the goodbaby use lifesize room 200 and lifesize express to communicate with overseas partners and r & d centers. the c

29、ompany convenes a video meeting each week in order to maintain organizational control and manage the company. iv the growth of the internet the growth of the internet have made more convenient to access and exchange information. overseas official websites and parenting forums the goodbaby set up ove

30、rseas official websites and parenting forums in different languages. consumers in different countries can learn and exchange product information on its official website and parenting forum. b industry specific globalization pressures i universal customer needs because of the different from the geogr

31、aphical, cultural, political, economic in the different countries, the global customers have the different needs. goodbaby concerned to listen and respond to different customer demands in different places as the goal. . b2000 “papa rock ” and “mama glide ” in americathe product took the . by storm o

32、n its launch. it was honored during the 1995 world infant product exposition held in dallas, texas as being the cradle of the new century, and an epochal product. ii global customers because of the different from the geographical, cultural, political, economic in the different countries, the global

33、customers have the different needs. when customers are global, they demand standardized inputs around the world. so many mncs do not sell the same products to the customers directly but seek the different needs of the customers, and then produce the products to meet the requirements. this led many m

34、ncs to carry out a wide range of strategies iii global competitors the infant industry in china is very competitive. whats worse, the foreign infant enterprises such as johnson & johnson(worlds top ten cosmetics / skin care brand, national exemption product), combi(united states), mother and bab

35、y (japan, you jiani) continue to enter the chinese market to grab market share. in order to ensure the profits and market share, goodbaby has to take the international road. iv high investment intensity -high r & d expenses -to open the . market, goodbaby invent the mom shake, father shake” chil

36、d car. to open the european market, goodbaby still use the product innovation as the stepping stone. these show that the company attaches great importance to the product research and development. -goodbaby has a 5000 square meter based industrial design institute, more than 100 engineers, designers.

37、 goodbaby is preparing to build a nearly 20,000 square meters area of research and development center, from this we can know goodbayis cost in research and development is enormous. for example, in 2007, goodbaby sales of 35 billion, of which 3% to 4% will be used and innovation. innovation, not only

38、 technological innovation, sales model of innovation is equally important. companies in the . boston, amsterdam and tokyo, japan 3 r & d centers set up for the united states, europe, japan and the three major markets, the product of localization design, adapted to local consumer demand. these r

39、& d center, brings together the industrys top designers, so that goodbaby the level of infant car r & d leader in the world. v cost reduction pressures goodbaby s products compared with its competitors one big advantage is the lower prices. this means that goodbaby company must lower their p

40、roduction costs to ensure that the companys profits. the goodbaby work across departments to not just control costs but achieve the ultimate goal: maximizing profitability. ?improve understanding of key drivers of company profitability and shareholder value ?recognize the key ways in which global ec

41、onomic fundamentals impact googbabys cost base ?become familiar with the latest and most important technologies goodbaby are using to lower their costs while simultaneously raising revenue, often with the same initiatives ?identify crucial areas where costs can be prevented or reduced ?review and st

42、udy real-life examples of cost management techniques and technological adoption at world-class infant industry ?evaluate the long-term prospect for cost management c country specific i trade barriers/trade incentives . exchange rate fluctuations -barrier in america since 2006, the appreciation of th

43、e rmb exchange rate movements are becoming increasingly infant company in chinas exports, in the process from raising funds in production to get the payment from the buyer , enterprises not only face the losses caused by exchange rate movements, but also must pay the bank interest on loans. ii cultu

44、ral differences in america, some young parents like in a few years continued to have two children, it is said that it easily causes the two children a sense of affinity, and also rears their competitiveness. therefore, goodbaby develops the special design for a two car hopper, making two children to

45、 sit together. iii the internet the growth of the internet have made more convenient to access and exchange information. on july 19, 2000, the goodbaby group established the goodbaby parenting network which became chinas first ever website for scientific parenting.lifesize high definition video comm

46、unications solutions can truly reproduce the details screen for remote interaction provide excellent experience. currently, goodbaby group selected lifesize products, including lifesize room 200 and lifesize express. it is reported that, based on lifesize high definition video communication in the s

47、uccessful application of global r & d center, goodbaby group decided to further expand the applications of the system, so that more branches and important work can take this system and highly efficient operation. lifesize team making steady progress in the global services to help customers arran

48、ge the procurement and installation of the system d mnc specific i management shortcomings brain drain personnel especially talented people are critical to the survival and development of enterprises, and consequently it is imperative to solve the problem of brain drain. this means goodbaby must hav

49、e good human resource management practices so as not to lose talented employees. ii new product technologies goodbaby began adopting a globalization strategy since the early 1990s, and started establishing its presence in major markets such as north america and europe. the companys r&d center in

50、 chinas kunshan city is its crown jewel, with a cluster of research and development centers in boston .); utrecht (holland) and tokyo (japan) revolving around it. together they cover a complete range of r&d activities including consumer study; market survey and creative product design. over 300

51、r&d and design engineers consolidate their design resources and directly integrate the information collected from the markets into product design activities. they seek to understand the dynamics of the local market, its preference, fashion and taste. they study consumers needs and make daily bre

52、akthroughs from market research to product planning, from diverse perspectives such as pediatrics; ergonomics; physiology; materials science, and product design. to-date goodbaby has garnered over 400 foreign and local patents, making it the leader of patent ownership in its industry. iii jit manufa

53、cturing every day ，goodbaby has a large amount of products to be transported to the railway station, port, and then were sent by rail and ships to the whole of china and the world. its cost is large. many mnc have realized jit manufacturing, reduced their costs and obtained greater profits. so goodb

54、aby need to keep up with others ,and the best way is globalization. wal-marts erp system accurately calculate the demand, and goodbaby group manufacture according to the demand. structure a. overall structure i .firm s organizationfrom the firms organization chart . we can find out that to goodbaby，

55、 market development are separate from function completely. the human resources, legal affairs, constructions,new product development,and quality department are all controlled by the functional organization fully. promotion department is responsible for business folw, logistics， global advance and so

56、mething like those. the goodbaby headquarters is in jiangsu. headquarters in china set up a special department which used to promote the exchange of each main market and communicate between headquarters and branch. goodbaby has also established a funding stream promotion department separately. this

57、department needs to manage all capital inflow, outflow, audits funds campaign. this arrangement will promote the process of marketing and financial separately. it reduces the probability of chaos and other things occurred in the marketing. ii .area division from the whole structure, we can find out

58、that the international business of goodbaby are divided by area. goodbaby is the worlds largest supplier of baby carriages. in china, the good boy holding 67% market share keep the first in 15 consecutive years; in the . %market share sales first in the 9 years; in the highly fragmented european mar

59、ket, goodbaby of the market share 13%, sales volume of the first 2 consecutive years. b. affiliate structure for our offices overseas, multi-domestic affiliate structure can best describes our overseas office.in the chinese market, goodbaby sells the products to the different cities directly .in the

60、 overseas markets ,such as usa、russia, goodbaby sets up many affiliates and builds many factories. goodbaby only provides the technology and management to the affiliates. these affiliates have independent profits and measurement criteria. according to different needs in the local market, the affiliates will product the different products which are different from the chinese market. in many c