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> Small Farmers in a Big Country: Challenges Faced by Sunriver Tea

商品編號: TU0123
出版日期: 2021/11/10
作者姓名:
Ouyang, Taohua;Gong, Ke;Shen, Meihua;Li, Zhengbo;Zheng, Shuwen
商品類別: Other
商品規格: 14p

再版日期:
地域: China
產業: Fabrication and manufacturing
個案年度: -  

 


商品敘述:

Small farmers in a big country" is an accurate portrayal of the tea industry in China. China''s tea industry chain links thousands of tea farmers and more than 70,000 tea-related enterprises. However, the highly dispersed structure of the tea industry restricts its development. Sunriver Holding Group Co. Ltd. ("Sunriver Group") started to invest in and acquire the time-honoured Keemun Black Tea Factory after signing an agreement with the government of Keemun County of Anhui Province in 2010. Given this industrial configuration, how can Sunriver Tea Co. Ltd. ("Sunriver Tea") make business breakthroughs and gain competitive advantage? In order to create differentiation, Sunriver Tea established the value proposition of "Small Place of Origin, Sunriver Tea". It attempted to create high-quality and differentiated tea products through the concept of "small place of origin". It also chose multi-category management to buildscale, rather than focusing on only one category, black tea. Challenges encountered by Sunriver Tea in implementing its strategy: First, in the tea planting process, Sunriver Tea restructured the supplier''s value chain and tried to obtain high-quality tea garden resources through large investment. However, due to the difficulty in establishing agricultural products as high quality, it is difficult to reflect the value of high-quality tea from a high-quality place of origin by focusing on differentiated products based on place of origin. In the tea production process, Sunriver Tea restructured its internal value chain through automated and intelligent manufacturing, improving production efficiency and guaranteeing stability. However, Sunriver Tea''s cost-reduction advantage is not obvious, due to low public awareness of the value of tea culture and its traditional handicraft, and the existence of many farmers and workshops in the market competing with one another. Second, the value was mainly delivered through CCTV advertising targeted at a broad range of customers, but it did not seem to have a strong impact on consumer awareness. In terms of sales, Sunriver Tea still chose traditional direct retail as the main channel as it was a start-up brand, and it was expensive to promote via e-commerce. Consumers were slow to recognize the cultural value delivered behind the "small place of origin". The strategy of "small place of origin" has been in place for 8 years. The management personnel of Sunriver Tea have been considering how to integrate the value chains of multi tea products at the bottom level during value creation and delivery under the strategic value proposition of Sunriver Tea "small places of origin", so as to take full advantage of the combined strengths of differentiated competition?.


涵蓋領域:

Strategy;Competitive advantage


相關資料:

Case Teaching Note, (TU0124), 22p, by Taohua Ouyang, Ke Gong, Meihua Shen, Zhengbo Li, Shuwen Zheng