CHINT Group (A): Growing CHINT, growing challenges
CHINT started in the switchgear business in 1984 with an initial investment of RMB30,000 in a poor region at that time. As of 2006, it was generating sales of over €2 billion. What led to this transformation? CHINT achieved profitable growth via quality control and R&D investment. Through brand licensing and share exchange, Mr. Nan, the founder, owner, and chairman of the CHINT Group, controlled a large production base comprised of many local producers. Nan’s products were sold through an extensive distribution network that reached cities and countryside and successfully won CHINT the top position in China’s low voltage market. CHINT served China’s mid-tier segment, providing a wide range of quality low-voltage products. However, MNCs, such as ABB, Siemens and Schneider Electric, were now starting to move into the mid-tier segment. Given their technology, know-how and resources, Nan had good reason to be worried. In addition to MNCs, other local competitors were catching up. In Wenzhou alone, CHINT faced competition from Tengen and People Electrical Apparatus Group and from many niche players across China. These companies were also improving their product quality while remaining price competitive. How could CHINT respond to the competitive pressures from both sides and remain the leader in China’s low-voltage business?
April 2009
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
In this study, we analyze how the performance-aspiration gap influences strategic change in family firms, providing evidence of the moderating role...
The call by the former Italian prime minister and ECB president for massive investment in the EU is a wake-up call to Europe's economic stagnation....
The case highlights the significant role played by the International Olympic Committee (IOC) in reducing its environmental footprint and promoting ...
There is a Chinese saying that wealth does not last beyond three generations, and the reality is that sustaining family businesses is a significant...
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in Review of Managerial Science October 2024, vol. 18, pp. 2981-3005 https://doi.org/10.1007/s11846-023-00703-3
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD 9 September 2024
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications