Gome: Bidding for China Paradise Harvard Case Solution & Analysis

Come on, the largest electronics retailer in China, China has the opportunity to purchase paradise, the number three player in the Chinese electronics industry, the retail trade. This took place in the general context of a large development of the market and the potential consolidation of household electronic appliance retail sector. Gome, Suning, and China Paradise, the top three players in the market, all experienced phenomenal growth, but Gome is slowly losing steam and risks overtake current number two, Suning. In addition, after China's accession to the WTO, and the end of its five-year period of protection, foreign competition, such as Best Buy, came on the market and is associated with changes in the competitive environment. Come on, you must decide what to do, and if it does, it must move quickly. The decision will depend on the answer to some important questions. Why China Paradise want to sell? If China Paradise was not possible, as it were, Gome guarantee that it will not follow suit? This is the best time to buy China Paradise? Whether it should focus on correcting it to the best performance of the store, or whether it should continue to rely on the growth of the overall size of the operation in the total number of stores? Is there a purchase by China Paradise Let's put in a position that it will again be very high in the total number of shops, but lags in productivity in the shop? This can be a big problem, especially if the acquired operation has a different culture than the existing operations. Gome how to fix this? How the acquisition, if it happens, with the overall corporate strategy, building on the thin edge and volume? How would it increase or hurt Come in its positioning, when competition with domestic and international players are expected to step up? "Hide
by Li Jin, Li Liao Source: Harvard Business School 26 pages. Publication Date: August 20, 2007. Prod. #: 208002-PDF-ENG

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