Case: Wanxiang Group: A Chinese Company's Global Strategy

July 9,2008

1. Based on comparing the CAGRs for the OE and Aftermarket segments from question above, and your answer to the question regarding which segment is important to Wanxiang. What is the implication of differing OE and aftermarket CAGRs for Wanxiang?

Group of answer choices

Wangxiang is growing so CAGRs are irrelevant.

There is insufficient data in the case.

Wangxiang is competing in a rapidly growing segment.

Wangxiang is competing in a shrinking segment.

2. Based on the case, who do you think are Wangxiang's primary customers.

Group of answer choices

There is insufficient data in the case.

Global autorepair garages and mechanics.

US auto repair garages, stores and auto repair mechanics.

US auto manufacturers.

3. Based on analyzing Wangxiang's capabilities, its present market segment and its customers should Wangxiang build an electric car?

Group of answer choices

Yes because it has experience selling to individual customers.

No because even though it makes all the parts, a car will compete with its current customers.

Yes because it has the marketing, branding and selling capabilities required for the car market.

Yes because it makes all the parts anyway.

4. Based on the case what resources has Wangxiang gathered that provide it a competitive advantage.

Group of answer choices

Wangxiang resources include human capital, acquisition experience, and learning and brands from acquisitions.

Wangxiang resources include loans from Chinese government, high quality products and US acquisitions.

Wangxiang resources include US firms and their technological knowhow.

Wangxang has no resources.