Zhongda Optical Cable Engineering Co. is a small business, the optical cable engineering services for entrepreneurs, installation of intranet applications are in a province in China. As one of the first providers in the market and a high quality service provider, the company was able to charge premium prices. However, the market has changed, now with many competitors provide similar services. In addition, contractors – and some end users – learned how Zhongda main task, optical cable welding, do … Read more »

Zhongda Optical Cable Engineering Co. is a small business, the optical cable engineering services for entrepreneurs, installation of intranet applications are in a province in China. As one of the first providers in the market and a high quality service provider, the company was able to charge premium prices. However, the market has changed, now with many competitors provide similar services. In addition, contractors – and some end users – learned how to do Zhongda main task, optical cable welding, for themselves. Zhongda has three options: aggressive target end-user accounts, withdrawal from cable engineering services and focus on the distribution cable components or start production of optical cable welding machines. None of them is a perfect match for Zhongda skills, but the prospects for continued prosperity in his current role is bleak.
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from
Terry H. German,
Alan Yang Wenchu
Source: Ivey Publishing
19 pages.
Publication Date: Jun 23, 2003. Prod #: 903A08-PDF-ENG
Zhongda Optical Cable Engineering HBR case solution

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