Steeltech: Competing in China's Auto Market

Published 16 Dec 2010
Reference 5747
Topic Strategy
Industry Automotive
Region Asia
Summary

Steeltech is a supplier of high-quality tools to the automotive industry. Highly successful in Western markets, Steeltech has been making lossses in China since its entry 7 years ago. Key issues are cost, quality, relationship building and maintenance, and intellectual property protection. The company needs to decide how to proceed with its Chinese operations.

Teaching objectives

The case showcases typical issues foreign firms face in China. For students with limited experience in China, the case illustrates what to expect in China and provides a foundation for introducing them to possible remedies. For experienced managers, the case helps stimulate discussion of possible remedies based on participants' experience.

Keywords
  • China
  • automotive industry
  • international business
  • liability of foreignness
  • intellectual property
  • foreign business customs
  • family business
  • RD1110
  • AR1011
  • AR2010