Long Lines Lost Profits: Chinas Regulated Fuels Market Harvard Case Solution & Analysis

Hong Kong-investment banking analyst Steven Chen traveled to the mainland province of Guangdong in late summer of 2005, to tour the new service stations built Sino-foreign oil joint venture. Concerned about the long lines at gas stations in Shenzhen, the driver decided to fill the tank with the "expensive" gas to Hong Kong border crossing. Crude oil prices, fixed in China in recent years has increased much more than the government-guided gasoline and diesel fuel by squeezing the margins of local processors. There were rumors that independent stations are having trouble getting supplies, and the "black market" trading was active. They got to Hong Kong, Guangzhou highway, Stephen questioned the strategy of western oil companies aggressively included in the price-controlled market. "Hide
by Ka-Fu Wong, Mark Stimson Source: University of Hong Kong, 20 pages. Publication Date: November 29, 2006. Prod. #: HKU605-PDF-ENG

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