This case shows how institutional transitions in an emerging market strategy and characterize the performance of a small business and its competitive environment dynamics. Elite Optical, a family run business, was founded during China’s economic reforms in Nanning, Guanxi province in the late 1980s. His first eyeglasses shop, opened in 1986, was immediately a success if the only major competitor at the time was De Heng Li, a traditional state-owned enterprises (SOEs). In 2013, the entrepreneurial fa … Read more »

This case shows how institutional transitions in an emerging market strategy and characterize the performance of a small business and its competitive environment dynamics. Elite Optical, a family run business, was founded during China’s economic reforms in Nanning, Guanxi province in the late 1980s. His first eyeglasses shop, opened in 1986, was immediately a success if the only major competitor at the time was De Heng Li, a traditional state-owned enterprises (SOEs). In 2013, the family business was celebrating his 28th Anniversary with 15 optical outlets in the city of Nanning. However, the competitive environment in the eyewear industry has changed substantially and become more intense since the early 2000s, when more national and international players in the local market eyewear occurred. Cheng Zhi, CEO and President of Elite Optical, is considering how to respond to competitive threats. At the same time, he also faces challenges, how to cope with the growing demand for the transformation of the family business into a professionally managed company in the near future.
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from
Chiu Shih-chi,
Wei Fan,
Yvonne Chong
Source: ABCC at Nanyang Tech University
14 pages.
Release Date: 13 May 2013. Prod #: NTU038-PDF-ENG
Entrepreneurship in the private sector in China: Guangxi Elite Optical HBR case solution

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