Achieving Competitive Advantage: Customer Value Drivers Based Market Strategy in China
Wu, Lishan (2018)
2018
Industrial Engineering and Management
Talouden ja rakentamisen tiedekunta - Faculty of Business and Built Environment
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Hyväksymispäivämäärä
2018-03-07
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201802201269
https://urn.fi/URN:NBN:fi:tty-201802201269
Tiivistelmä
China’s rapid urbanization and industrialization have led to the huge generation of municipal solid waste (MSW), making China be the world’s largest producer of MSW. Compared with landfill, waste incineration has a steady increasing trend in the last decade, from 10% to 34%. The trend of waste incineration in China has provided a huge market for western waste-to-energy (WtE) incineration technology suppliers who supply equipment to WtE plants. However, it might be a bigger challenge for western suppliers, due to the unique environment in China. Therefore, this thesis is to serve the case company as a western technology supplier who has the intention to enter the China WtE market.
The main research question of this thesis is what market strategy should the case company employ to gain sustained competitive advantages in China WtE market. To answer this question, this thesis draws on different kinds of literature and provides a framework for figuring out the case company’s competitive advantages. This thesis uses primary data from customer interviews and secondary data from a variety of sources. The data is used to identify the macro environment of China WtE market, analyze the industrial competitive landscape, and figure out the customer value drivers for boiler investment. With the findings, the case company’s offering can be tailored to meet the need of Chinese customers. The suitable market strategy of achieving sustained competitive advantage in China WtE market is presented to the case company.
The outcome of the study indicates that the proposed framework supports the study. To answer the research question, the case company should employ differentiation focus market strategy in China WtE market, through customer and supplier’s joint problem solving, and further cooperation with pre-treatment supplier and local EPC contractor, to sustain its competitive advantages. The case company should emphasize on its differentiated offerings instead of cost reduction. Regarding the theoretical contribution, this thesis is tightly designed to serve western technology supplier in entering China WtE market. To conclude, this thesis creates fruitful thoughts about what should a western company consider when entering the China WtE market. This thesis has the limited scope of the study, and the limited primary data collection and analysis. Such limitations create spaces for further research on the subject.
The main research question of this thesis is what market strategy should the case company employ to gain sustained competitive advantages in China WtE market. To answer this question, this thesis draws on different kinds of literature and provides a framework for figuring out the case company’s competitive advantages. This thesis uses primary data from customer interviews and secondary data from a variety of sources. The data is used to identify the macro environment of China WtE market, analyze the industrial competitive landscape, and figure out the customer value drivers for boiler investment. With the findings, the case company’s offering can be tailored to meet the need of Chinese customers. The suitable market strategy of achieving sustained competitive advantage in China WtE market is presented to the case company.
The outcome of the study indicates that the proposed framework supports the study. To answer the research question, the case company should employ differentiation focus market strategy in China WtE market, through customer and supplier’s joint problem solving, and further cooperation with pre-treatment supplier and local EPC contractor, to sustain its competitive advantages. The case company should emphasize on its differentiated offerings instead of cost reduction. Regarding the theoretical contribution, this thesis is tightly designed to serve western technology supplier in entering China WtE market. To conclude, this thesis creates fruitful thoughts about what should a western company consider when entering the China WtE market. This thesis has the limited scope of the study, and the limited primary data collection and analysis. Such limitations create spaces for further research on the subject.