B&Q's Strategies in China

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR245 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

International Business | Globalization
Case Length : 11 Pages
Period : 1999-2006
Pub Date : 2007
Teaching Note : Not Available
Organization : B&Q
Industry : Retail
Countries : China

Abstract:

The cases discusses, UK based home improvement retailer, B&Q's foray into China. B&Q entered the Chinese market in the year 1999 by opening a store in Shanghai through a joint venture with Home Decorative Building Materials Limited, a Shanghai based property developer. At that time, the Do-it-Yourself (DIY) concept had not gained popularity in China. Overcoming the initial challenges, B&Q was able to establish itself firmly in the Chinese market. B&Q modified its stores to suit the Chinese consumers and introduced the concept of 'Buy-it-Yourself.' The company's growth coincided with the rapid infrastructural development in the country, and increased activity in the housing sector.

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The rapid growth of the Chinese home improvement industry led several leading international companies like IKEA to expand their operations in the country. By late 2006, B&Q faced stiff competition from foreign as well as local companies like OrientHome. The case examines the entry and expansion strategies of B&Q in China and how the company is positioned to face increasing competition in the Chinese home improvement industry.

Issues:

Study and analyze the entry and expansion strategies of B&Q in China

Examine B&Q's localization strategies in China

Appreciate B&Q's efforts to amalgamate its global best practices with locally viable strategies in China

Evaluate B&Q's efforts to train the local personnel in the company's best practices

Analyze the competitive position of B&Q in China

Contents:

  Page No.
Introduction 1
Background Note 2
The Initial Years in China 2
B&Q's Growth Strategies 4
Success Factors 4
Retail Expansion 5
The Challenges 6
The Road Ahead 8
Exhibits 9

Keywords:

B&Q China, Home Improvement Industry, World Trade Organization, Do It Yourself Concept, Entry Strategy, Growth Strategies , Joint Venture, Retail Expansion, Foreign Direct Investment, Supply chain management, Leading Retailers in China, Every Day Fair Prices, International Trade Practices

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