Case Study

Chinese entrepreneurs: The story of Michael Ma

6 pages
November 2007
Reference: IMD-3-1857

The initial business model of the Speedup Automobile Racing was very traditional. Sponsors provided economic support so Speedup could participate in championship races. However with competition becoming increasingly fierce, Speedup needed to find a new profit model. One such model which Michael Ma implemented was a copy of the Formula One promoter Bernie Ecclestone’s model. Another would be to turn the club’s six departments into six independent profit centers. What sort of challenges would Michael Ma face in building a new business model?

Learning Objective

To understand how Chinese entrepreneurs started from scratch and grew to a certain size and how the business evolved as they grew. What entrepreneurial characteristics can be drawn from the case? What contributed to their success? How could MNCs compete with them in the China market? As they move forward, what challenges are they likely to face in the future?

Formula One
Field Research
© 2007
Available Languages
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