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Dinghai Tech: Internationalizing an Industry Chain of Rubber Products

Saier Su, Lucas Liang Wang, Shuyan Li, Wanli Hu, Xina Ji

商品編號:W46606
出版日期:2025/12/04
再版日期:
商品來源:
商品主題:International Business; Strategy
商品類型:Case (Field)
涵蓋議題:internationalization;industry chain;rubber ducks
難易度:4 - Undergraduate/MBA
內容長度:9 頁
地域:China
產業:Manufacturing
事件年度:2024

In January 2024, the founder and chief executive officer of Dinghai Technology Co. Ltd. (Dinghai) was facing a foreign investment decision: whether to commit US$5 million to establishing a warehouse and marketing centre in the United States. The company originated from a small rubber products factory in a city in Zhejiang Province, China. Facing intense domestic competition since 2010, Dinghai had embarked on an internationalization strategy, first increasing sales through exports and then building a production plant in Thailand. This first foreign subsidiary, in a rubber-rich country, enabled Dinghai to produce semi-finished components domestically and assemble them in Thailand for re-export, thereby bypassing the 25 per cent tariff in its largest foreign market, the United States. The US marketing centre represented the next strategic step to expand Dinghai’s global footprint and forward integrate another supply chain function. However, the initiative was complex, given the company’s strained financial resources, the urgent need to stabilize its Thai operation, and a lack of international operational capabilities.

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