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Ziwo Agricultural Service Co. Ltd.: Vertical Integration

Yibo Lyu; Shaojie Han; Binyuan He; Jingqin Su; Xijun Yu

商品編號:9B18M063
出版日期:2018/05/04
再版日期:2018/04/04
商品來源:
商品主題:Entrepreneurship; General Management/Strategy; International Business
商品類型:Case (Field)
涵蓋議題:Supply Chain
難易度:5 - MBA/Postgraduate
內容長度:12 頁
地域:China
產業:Agriculture; Forestry; Fishing and Hunting
事件年度:

Ziwo Agricultural Service Co. Ltd. (Ziwo), located in the city of Shenyang in Liaoning Province in northeastern China, was a market leader in sales of agricultural materials. In 2006, China began changing how cropland was distributed and used. Over the next few years, decentralized, small farm households gave way to larger, more centralized, family farms. The change undermined Ziwo’s business, driving it into a sharp decline in market share and income from 2008 to 2011.

In December 2011, the company considered integrating the supply chain vertically to survive the decline. Was this move necessary, and if so, which direction should the vertical integration strategy take—forward or backward? How could Ziwo even achieve vertical integration under its current circumstances? Finally, would vertical integration help Ziwo deal with an emerging threat from Chinese Internet retailers that were entering the agricultural supply chain?

教學手冊:Ziwo Agricultural Service Co. Ltd.: Vertical Integration - Teaching Note
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