HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeZhejiang Haili Electronic Technology Co., Ltd (Holip) (A2)back to Strategy

Case Study

Zhejiang Haili Electronic Technology Co., Ltd (Holip) (A2)

By Adrian B. Ryans, Winter Nie and Abraham Hongze Lu

7 pages

January 2009

Order this case study

Reference: IMD-3-2052

The case describes how Fang Guangming, a serial Chinese entrepreneur, entered the relatively high-technology frequency converters business from the stuffed toy business where he began. Holip started by reverse engineering Japanese products, outsourcing capital intensive parts of the manufacturing process and limiting Holip’s production role to final assembly and testing. Holip opted for a sales strategy that worked well with local Chinese customers. Its early success was largely due to fast response time, customized services and low prices. The company suffered losses in its first year, and then quickly became profitable by having a very lean cost structure and introducing new and higher quality products. The company had ambitions to grow and to move up in the market by developing new and better products. However, developing the appropriate technology was a significant barrier and the management felt they needed access to additional capital to achieve their objectives. One option that management was considering was to sell out to Danfoss. The (A2) case is written from the perspective of Holip management and has much detailed and complete information on Holip and the hopes and concerns of the Holip management team. The information on Danfoss is quite limited. Much of this additional information was not known to Danfoss at the time of the (A1) case. The (A1) and (A2) cases allow the class to be split into two groups: one seeing the situation through the eyes of Danfoss and the other seeing the situation through the eyes of the Holip management team. This leads to a richer classroom discussion of the two perspectives than is possible if the whole class has read the (A) case.

Learning Objective

To understand how a fairly typical low cost Chinese player thinks and operates, and the challenges that many of them face as competition in their markets intensifies. Depending on the course’s learning objectives, the Danfoss-Holip case series can be taught either by using the A case followed by the B case, or by using the A1 and A2 cases followed by the B-case.

Keywords

Low Cost Competition, Pre-acquisition Analysis, Dual-brand Strategy, General Management, Strategy

Settings

China
May 2005

Type

Field Research

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Danfoss Motion Controls acquiring Holip (B)
Danfoss Motion Controls and Holip (A)
Danfoss Motion Controls and Holip (A) (Abridged)
Danfoss motion controls (A1)
Zhejiang Haili Electronic Technology Co., Ltd (Holip) (A2)

This case study is part of a series

Danfoss Motion Controls acquiring Holip (B)
Danfoss Motion Controls and Holip (A)
Danfoss Motion Controls and Holip (A) (Abridged)
Danfoss motion controls (A1)
Zhejiang Haili Electronic Technology Co., Ltd (Holip) (A2)

Keep reading

Article

Stakeholders and Strategy - Brain Circuits

Stakeholders and strategy must align—identify value-critical players, remove free riders, and drive progress by engaging those who truly impact outcomes.

Strategy

By Paul Strebel, Angeliki Papasava and Patrick Reinmoeller

in I by IMD

Article

Leading Global Operations - Complexity and Change

Leading global operations through complexity and change in 2025 means embracing AI and ML to streamline supply chains and meet rising demands.

Artificial Intelligence Digital Leadership Strategy Supply Chain

By Ralf W. Seifert and Katrin Siebenbürger Hacki

in I by IMD

Article

Repairing reputational damage: don’t go the way of Boeing

All organizations should have a plan to secure trust during, after (and even before) a crisis hits. Here are a host of examples, good and bad, to learn from.

Leadership Resilience Strategy

By Michael Skapinker

in I by IMD

Case Study

The price of innovation: Will Medacta compromise its DNA by embracing robotics?

Strategy Innovation

By Carlos Cordon, Antonio Di Brino, Jesper Fibiger, Frank Kristensen, Soniya Soniya and Alison End Fineberg

Article

Strategy Meets Execution - Supply Chain

10 years of exclusive surveys reveal top supply chain strategy challenges—and how tools like AI, ML, and digital twins are reshaping the path forward.

Strategy Supply Chain

By Ralf W. Seifert and Katrin Siebenbürger Hacki

in I by IMD

Article

4 Key Guidelines for Success - Demystifying AI Use Cases

Uncover AI use cases and opportunities with 4 clear imperatives that align data with business value. Avoid pitfalls and ask the right questions.

Artificial Intelligence Strategy

By Didier Bonnet and Achim Plueckebaum

in I by IMD

Article

Tariff wars: How business leaders can survive and thrive

Stay ahead in a shifting global economy. Learn how to build resilient supply chains, manage currency risks, and adapt strategies for long-term business success.

Economics Geopolitics Strategy Supply Chain

By Arturo Bris

in I by IMD

Case Study

Your company (and your life) in the hands of an AI agent?

The case study introduces an original way of exploring the many questions and concerns around AI adoption in business. Based on a true story, it discusses the dilemma of AI implementation through Joe, the CIO of ParcelFlow. Joe is getting ready to...

Artificial Intelligence Digital Strategy

By José Parra Moyano and Alix Rey

Article

People, Culture, and Strategy - The Boards Role

#post_excerptHannele Jakosuo-Jansson of Neste and Finnair shared key insights on board roles in CEO transitions and culture shifts with IMD’s High Performance Boards program.

Board Business Transformation Strategy

By Didier Cossin and Yukie Saito

in I by IMD

Case Study

AstraPay in Indonesia: Playing the digital payments platform vs. ecosystem game

This case study explores AstraPay’s journey to become a significant player, despite its latecomer status, in Indonesia’s burgeoning digital payments landscape. Launched in 2018, AstraPay had grown to serve over one million customers, but it faced ...

Digital General Management Strategy

By Marleen Dieleman, Aarthi Thyagarajan, Pranesh Mahadeo, Maxence Nobels and Guillaume Clement

Leading Global Operations - Complexity and Change

By Ralf W. Seifert and Katrin Siebenbürger Hacki
in I by IMD

Summary

Leading global operations through complexity and change in 2025 means embracing AI and ML to streamline supply chains and meet rising demands.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Digital

Leadership

Strategy

Supply Chain

Browse all topics

Repairing reputational damage: don’t go the way of Boeing

By Michael Skapinker
in I by IMD

Summary

All organizations should have a plan to secure trust during, after (and even before) a crisis hits. Here are a host of examples, good and bad, to learn from.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Leadership

Resilience

Strategy

Browse all topics

The price of innovation: Will Medacta compromise its DNA by embracing robotics?

By Carlos Cordon Antonio Di Brino Jesper Fibiger Frank Kristensen Soniya Soniya and Alison End Fineberg
Case reference: IMD-2663 ©2025

Summary

Medacta Group SA is a rising star in the orthopedics market, achieving global success through innovative products and techniques, with a particular emphasis on minimally invasive techniques that bring meaningful value to its patients. With its approaches such as Anterior Minimally Invasive Surgery (AMIS) for hip replacement and Kinematic Alignment for knees, Medacta offers high-quality techniques, supporting tools and cutting-edge implants. It also offers personalized surgeon education through the Medacta Orthopedic Research and Education (M.O.R.E.) Institute. Medacta is situated in an evolving landscape, with competitors including Stryker and Zimmer Biomet investing heavily in robotic technologies. Technological advances are being made in data-driven planning tools – including augmented reality – and research institutes are looking for the most advanced solutions as demanded by many hospitals and surgeons. Despite these trends in the industry, Medacta's CEO, Francesco Siccardi has concerns regarding the value of existing robotic systems, noting their lack of proven benefits in patient outcomes or cost reductions, especially in a context of increasing emphasis on value-based care and sustainability. The case explores the opportunities and challenges confronting Medacta as they decide whether to enter the orthopedic robotics market. The company wants to continue to differentiate itself and drive growth in line with its foundational principles of patient care, operational excellence and sustainable innovation. Today, Francesco faces a critical decision around whether now is the time to enter the robotics market and, if so, how Medacta should do so to preserve its culture and stay true to its DNA.

Reference IMD-2663

Organization Medacta Group

Industry Healthcare, Medical Device

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Innovation

Browse all topics

Tariff wars: How business leaders can survive and thrive

By Arturo Bris
in I by IMD

Summary

Stay ahead in a shifting global economy. Learn how to build resilient supply chains, manage currency risks, and adapt strategies for long-term business success.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Economics

Geopolitics

Strategy

Supply Chain

Browse all topics

Your company (and your life) in the hands of an AI agent?

By José Parra Moyano and Alix Rey
Case reference: IMD-2666 ©2025

Summary

Reference IMD-2666

Industry Healthcare, Medical Device;Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Digital

Strategy

Browse all topics

People, Culture, and Strategy - The Boards Role

By Didier Cossin and Yukie Saito
in I by IMD

Summary

#post_excerptHannele Jakosuo-Jansson of Neste and Finnair shared key insights on board roles in CEO transitions and culture shifts with IMD’s High Performance Boards program.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Business Transformation

Strategy

Browse all topics

AstraPay in Indonesia: Playing the digital payments platform vs. ecosystem game

By Marleen Dieleman Aarthi Thyagarajan Pranesh Mahadeo Maxence Nobels and Guillaume Clement
Case reference: IMD-2650 ©2025

Summary

Reference IMD-2650

Organization AstraPay