Question

How did Sany succeed in China?
What market-entry strategies were utilized in this case?
Discuss Sany's strategy with the two brands in China and globally?
What challenges might be faced when integrating two companies?
What other thoughts/insights interested you about this case?

Answer 1

Answer to 1)

Reasons for sany’s success in china:

• The government poured hundreds of billions of dollars into the economy by launching enormous projects which created demand for trucks and trailers.
• It followed other Chinese manufacturers in offering generous financing terms on loans for its machines.
• Buyers were given the facility of making small down payments and hold off longer than usual before making their first payment.
• It holds off majorly on proposed research and development.

Answer to 2)

Marketing strategy of sany:

The marketing strategies adopted by sany can include focus on product quality, extensive customer service, warranty on the products sold by sany, parts centers, providing after market service, it relied on its own homegrown talent

Answer to 3)

After one year of integration, lingong and vovo has operated in many fields such as research and development, manufacturing, marketing and brand building,

Putzmeister which helped sany to purchase some parts from German supplier. It kept its purchasing strategy and supply chain unchanged to maintain its brand reputation. The firms in china had a two brand strategy. Putzmeister removed its pumps from Chinese market to help sany enjoy its reputation. But it continues to take advantage of sany’s distribution network to sell its machines.

Apart from strong presence in china, sany also has started to operate globally. To achieve its goal, the strategy adopted by sany includes three strategies that mainly concentrates on certain countries products and major accounts operation by product line, localization, dual brand, ecommerce etc.

Answer to 4)

Challenges when two companies are integrated:

• There may be lot of cultural challenges when two companies are integrated. The company’s human resource plays an active role in conducting trainings and sessions to build confidence in the minds of the staffs on their new roles and responsibilities.
• Conflicts can arise as a result of incompatibility f goals due to opposite behavior.
• There can be confusion in the minds of the stakeholders as after making heavy investment on mergers, can they pay sufficiently for the investors.
• There can be language barriers between the participants of the merger.
• Sometime the merger can fail when the top management is not properly involved in the evaluation before signing the merger deal.
• If integration and merger planning is not started at the earliest time, the chances of smooth transition keeps reducing.

Answer to 5)

Other thoughts:

When two companies would like to integrate there can be lot of challenges prevailing between them and it can’t be considered easy for any company to move such decisions and all pros and cons must be evaluated before making such decisions.

The case about sany describes the company’s strategies. How its strategy has helped the company to make its presence both locally and internationally. Hence proper strategy would help a company to achieve greater heights.