DANFOSS MOTION CONTROLS AND HOLIP (A) Harvard Case Solution & Analysis

Danfoss decided to make China a second dwelling market - quadrupling sales in China by 2008 and aiming for increase of 50% a year. This case focuses on the Motion Control department, which among other things sold frequency converters of Danfoss China. At the time of the case the good enough section was growing about three times as quickly as the premium segment and Danfoss was thinking about entering this fast growing market. To do this Danfoss had evaluated several of the local Chinese players as acquisitions targets, and had picked on Holip as the finest possible target. Erhardt Jessen, the  vice president of the division, needs to advocate whether to obtain the strategy, Holip and, if yes that Danfoss Motion Controls should adopt for Holip.

Crucial dilemmas that he would have to address comprised the degree to which Holip should be incorporated into Danfoss and the continued use of the Holip brand. It was written with the support of Danfoss and Holip direction teams. Players also have a chance to learn a typical small, low cost Chinese manufacturing company operates. Finally, they have the opportunity to understand the problems that should be resolved to successfully leverage the acquisition to attain the goals of the company in the good enough market segment. Depending on the course's learning objectives, the Danfoss-Holip case series can be taught either by using the A case followed by the B instance, or by using the A2 and A1 instances followed by the B-case.

PUBLICATION DATE: January 06, 2009 PRODUCT #: IMD488-HCB-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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