Lung Cheong International Holdings Ltd. was founded in 1979 as an Original Equipment Manufacturer (OEM) of toys in Hong Kong. As the Chinese economy mainland moved in the 1980s and 1990s, China was a large hinterland of cheap land and labor for low-tech manufacturing, and also a large and growing consumer market. Lung Cheong continuously felt the challenges of the changing business environment. If, after its production lines to the mainland or somewhere similarly low cost levels? How … Read more »

Lung Cheong International Holdings Ltd. was founded in 1979 as an Original Equipment Manufacturer (OEM) of toys in Hong Kong. As the Chinese economy mainland moved in the 1980s and 1990s, China was a large hinterland of cheap land and labor for low-tech manufacturing, and also a large and growing consumer market. Lung Cheong continuously felt the challenges of the changing business environment. If, after its production lines to the mainland or somewhere similarly low cost levels? How should it deal with its major Western and Japanese customers in order to maintain good relations? If there is the huge Chinese mainland market? If so, how could it with the mainland-based manufacturers who enjoyed lower production costs and competing products could sell very cheap? How could it deal with rampant piracy issues in the mainland market? Or should it instead to the West – especially the U.S. market
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from
Bennett Yim,
Vincent Mak
Source: University of Hong Kong
7 pages.
Publication Date: Jun 24, 2003. Prod #: HKU281-PDF-ENG
Lung Cheong International: How in a Changing Business Landscape HBR case solution Survive