Case Name :      Zhongda Optical Cable Engineering

Authors :           Terry H. Deutscher, Alan Wenchu Yang

Source :             Ivey Publishing

Case ID :            903A08

Discipline :        Strategy

Case Length :    19 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Zhongda Optical Cable Engineering Co. is a small company that provides optical cable engineering services to contractors who are installing intranet applications in a province in China. As an early entrant in the market and a high-quality service provider, the company was able to charge premium prices. However, the market has changed, with many competitors now providing similar services. Furthermore, contractors–and some end users–learned how to do Zhongda’s major task, optical cable welding, for themselves. Zhongda has three options: aggressively target end-user accounts, retreat from cable engineering services and focus on distributing cable components, or start manufacturing optical cable welding machines. None of these is a perfect match for Zhongda’s capabilities, but the prospects for continued prosperity in its current role are bleak.