GOLD WIND USA Harvard Case Solution & Analysis

GOLD WIND USA Case Study 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 function mere 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,the vision 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 difference is the difference of culture and mindset.In addition, the world financial recession also oiled the difference in selling the pattern hence,selling in US was different from selling in China. The initial reason was the difference in economy structure 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 business have 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 subsidiary company effects the Goldmine? Does Subsidizing the Goldmine really effects its sustainability and profits while operating in US?

The government subsidizes any business to encourage its operations and support its functions to pursue its ongoing strategy.In case of Goldmine, the Chinese government subsidizes the gold mineto promote its functions and operations 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 eliminate China 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 it made goldmine to put more investment into the functions which was initially supported 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 more precisely and specifically.It enabled the company to devise and plan the strategy according to the customer behaviors and market forces. In doing so, the company employed the US citizens as the VP of the company who had a previous experience of working with Asian markets. The mix of experience enabled the company to understand the deep under lying values, factors that derived the business environment and helped in strategizing the business strategy more effectively.

GOLD WIND USA Harvard Case Solution & Analysis



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 company to develop a better brand image in the US market as it was headed by the US national which made the local businesses to trust the company.....................\

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