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Case Study

CHINT Group (D): CHINT transmission & distribution (CHINT t&d)

By Winter Nie and Abraham Hongze Lu

2 pages

November 2009

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Reference: IMD-3-2110

CHINT became the largest producer of low-voltage electrical products in China. Having successfully secured the low-voltage product market, the company decided to expand from low-voltage products to medium- and high-voltage products, including power transmission and distribution (T&D). The power transmission and distribution business was very different from CHINT’s traditional market. In order to grow to the next level, CHINT needed to attract larger domestic clients. On the international stage, in order to ensure quality, larger utility companies normally required a five-year track record for the relevant product before it would buy from a manufacturer. How would CHINT be able to crack this market without five years of references serving larger utility companies?

Learning Objective

If the company started a new business with largely different customers, how could it break into the market? Should the company approach domestic customers and international customers differently? Should CHINT have different strategies for different regions?

Keywords

Moving Up the Value Chain, Good-enough Market, Low Cost Competition, Strategy, General Management

Settings

China
April 2009

Available Languages

English

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