Case : Sany: Will It Be Sunny in Europe? Concept : Conflict and Competition
SANY being one of the leading companies in China in construction equipment manufacturing, set out to explore other international markets. The company’s success in India, the Middle East and North Africa boosted its confidence to enter more markets. It would be important for SANY to lay out risks and benefits of entering the European Market. Perhaps this is not the right time for SANY to invest in Europe because of the recession. At the moment the Eurozone has a lot of financial stress on it. This stress can eventually lead to a financial meltdown. In fact the best countries to invest in at the moment for SANY would be in developing countries especially as the economy is booming due to a rise in middle class and heavy domestic consumption of goods.
Another problem facing the organization was customer views and opinions in the European market. With a large inflow of Chinese joining the Asian population in Europe, Chinese became important contributors to growth of the European economy. Europeans had a mixed impression and attitude towards this change. For some, it was great opportunity to earn more money by manufacturing and selling high quality products or services and for others, Chinese businesses aggressiveness in low and mid-end markets, low cost productions and operations and rapid market development worried the Europeans. In addition to this, the intensive media exposure of the quality problems associated with ‘Made in China’ products and high import volumes from China, worsened the situation. This led to stricter quotas for import, increasing number of anti-dumping cases and high technical standard requirements for low end products. At the moment SANY are investing in ‘developing’ countries so standard of goods is not posed as a problem whereas in ‘developed’ countries the standard of goods and services is expected to be higher.
Another problem that SANY may face in Europe is competing with already established global players. SANY has to think about
Another problem facing the organization was customer views and opinions in the European market. With a large inflow of Chinese joining the Asian population in Europe, Chinese became important contributors to growth of the European economy. Europeans had a mixed impression and attitude towards this change. For some, it was great opportunity to earn more money by manufacturing and selling high quality products or services and for others, Chinese businesses aggressiveness in low and mid-end markets, low cost productions and operations and rapid market development worried the Europeans. In addition to this, the intensive media exposure of the quality problems associated with ‘Made in China’ products and high import volumes from China, worsened the situation. This led to stricter quotas for import, increasing number of anti-dumping cases and high technical standard requirements for low end products. At the moment SANY are investing in ‘developing’ countries so standard of goods is not posed as a problem whereas in ‘developed’ countries the standard of goods and services is expected to be higher.
Another problem that SANY may face in Europe is competing with already established global players. SANY has to think about