Skip to main content
ESMT Case Study

Shanghai Zhenhua Heavy Industries Co., Ltd (ZPMC)

ESMT Case Study No. ESMT-314-0148-1
Olaf Plötner, Peter Utzig, Xuyi Wang, Qing Zhang (2014)
Strategy and general management
Market entry, product adaptation, business process improvement, competitive advantage
The case study shows the development of Chinese technology company ZPMC, which entered the container crane market in 1992 and, in the space of 15 years, achieved a global market share of over 70 percent. The case gives particular insights into the strategic decisions that led to ZPMC’s competitors being pushed aside in a market previously dominated by Western providers. It also clearly illustrates the risks and limitations facing companies that are strongly focused on growth.
The case study is designed to give insights into how technology companies from emerging and developing countries can establish themselves over the long term in a market dominated by Western companies. The aim is for students to gain important knowledge about approaches to competitive strategy in the market entry phase, during the growth period to market leader, and in diversification in new markets. Non-Chinese students in particular will gain increased awareness of developments in Chinese companies. Chinese students in particular will become more familiar with the pitfalls associated with the rapid growth of Chinese companies.
buy nowbuy nowbuy now