GOLDWIND USA Case Solution
1- Is selling in USA is same as selling in China? If not, what Tim has to do differently in order to capture the US market?
The Chinese market is merely a trustworthy market where the market forces and the government trusts the efforts of the organization and supports its functionmere by subsidizing the operation. Similarly, the Chinese environment works more on firm commitment and trust building function. However, US market is opposite to this. The government is aggressive, though it supports the FDI in US but it propagates the local market more. In addition,thevision and working style of the US market is totally different from china. The US market is a conservative market, where building trust is an issue. The major factor attributing the differenceisthe difference of culture and mindset.In addition, the world financial recession also oiled the difference in selling the patternhence,selling in US was different from selling inChina. The initial reason was the difference in economystructure in which US economy was fading, moreover, in US a great competition was already present-the GE, who had a history with USA.
In addition,the US population and businesshave different buying patterns and spending structure pertaining to different high and low cultures,which makes it a totally different market for Goldmine to sell in US.
2- How being a Beijing-based subsidiarycompany effects the Goldmine? Does Subsidizing the Goldmine really effects its sustainability and profits while operating in US?
The government subsidizesany business to encourage its operations and support its functions to pursue its ongoing strategy.In. case of Goldmine, the Chinese governmentsubsidizesthe goldmineto promote its functions andoperations in US. The subsidiary grand served as a supporting pillar to the goldmine to spread its business in US to cope up with the declining interest of US market I the project due to world financial crisis. The subsidiary grant enabled the goldmine to take the risk of stepping in US at the time when every player of the market was exiting it.However, with passing time, the US official forced WTO to eliminateChina subsidizing in US. This phenomenon eliminated the grant offered to Goldmine.
Though the elimination of subsidiary grant did not directly hit the profit of the company, yet itmade goldmine to put more investment into the functions which was initiallysupported by Beijing subsidiary grant.
3- Goldmine adopted the Localization strategy to sustain its business in US? Do you think it can sustain the position of the Goldmine in Future?
The localization strategyenabled the company to understand the culture of the US market moreprecisely and specifically.It enabled the company to devise and plan the strategy according to the customer behaviors and marketforces. Indoing so, the company employed the US citizens as the VP of the company who had a previous experience of working with Asian markets. Themix of experience enabled the company to understand the deepunderlying values, factors that derived the business environment and helped in strategizing the business strategy more effectively.
The approach helped the company in sustaining in the market, because it outlaid the current behavior of the customer and the market in great detail. It also helped the companyto develop a better brand image in the US market as it was headed by the US national which made the localbusinesses to trust the company.
4- What is the competitive advantage of the Goldmine?
The competitive advantage of the Goldmine which offers it an edge and a relative market share in the market is magnetic blades that are used in place of wooden shafts. The innovation of using the magnetic blades in the windmill allow the company easy shipping with low cost. Inaddition, the employment cost of magneticblades in the windmill is low and more reliable which reduces the maintenance cost.These factors offer a competitive edge to the company as no other player in the US is using such technique.
5- Why there was a conflict between goldmine US & Goldmine china. How the cultural conflict can be resolved in Goldmine case?
The case discusses the cultural conflict between US operations and China operation and the business strategythat both parties carry.The conflict arose due to different mindset and approach to doing business. Americans are more aggressive and have a conservativemindsetwhen it comes to business. On the other hand, the business approach of Chinese greatly focuses on keeping the things transparent and sticks tothe parent company value. Thedifference in values and visioncreated a conflict in keeping the both parties on same ground. In order to resolve the conflict, the company shall incorporatetheemployees of parent company and the new US Company into one team. Thiswill make the membersunderstandthestance of viewpoint of eachparty by dealing the issue together......................................
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