Company report in China Essays

Submitted By cianoneill
Words: 2637
Pages: 11

I visited Vichnet’s headquarters in recent weeks to get a first-hand glimpse of the company, how it came about and how it operates now. I met the CEO of the wire mesh cable rack manufacturing firm and I was granted a brilliant story of a successful entrepreneur and how he took his company to success. This man’s name was Mr. Yu Bo and before I begin my argument I will give a brief introduction to the firm and the man who established it.
Mr.Yu was a lecturer in a University in Shanghai in the 90’s. When he received his international teaching cert, he immigrated to Canada in search for work only to realise four years down the line that it wasn’t for him. Despite the fact that he didn’t find many opportunities in Canada, he did mention that he learned various lessons that helped him in doing business internationally later down the line. Mr.Yu set up his business on the 16th April 2006 with only 5 employees in sales and 40 in production soon after. His company, Vichnet produced wire mesh cable baskets which secure cables within a company office to protect them from rats and tangles. He opened his office in Ningbo’s science park incubator with his own personal savings and it still remains there with now over 30 employees in sales and 40 in production. Vichnet currently only sells to International firms as the turnover is not very high for their product in China. They hope to expand into China’s market in the next 2 years. Vichnet currently sell to over 1,000 different companies worldwide.
In this literature an argument will be developed and assessed using related literature and various tables. The report will be divided into the following sections; Section 1 will cover Vichnet’s internationally-proven marketing mix and evaluate the success this mix would have in China. Section 2 will give a description of how the firm has approached expansion in the Chinese market. Section 3 will discuss the ways in which Vichnet can increase their market share in China’s growing market. Section 4 will provide an argument based on whether or not Vichnet will be successful in the Chinese domestic market. Finally, Section 5 will conclude the essay with findings and personal opinions.
Section 1: Marketing Mix
Vichnet focuses on telecom products and projects, mainly export wire mesh cable tray systems and fittings. Vichnet have become masters of core technology throughout their years of manufacturing. The firm’s products include Welded Wire Mesh, Steel Wire Mesh Cable Trays, Wire Mesh Cable Trays, Wire Basket Cable Trays, Wire Mesh Fencing, Reinforcement Mesh, etc. Fittings are not directly serviced by Vichnet’s employees but rather the firms they supply. Not only does Vichnet produce outstanding wire mesh products, but also provides technical support in certain fields, training and consultations. Quality Control is also very important in the manufacturing division at Vichnet. Quality tests ensure the product is safe to sell and mitigates end-user dissatisfaction. The following images show examples of tests undergone in Vichnet’s manufacturing line;
1. Wire Mesh Cable Tray Welding Strength Tests

2. Salt Spray Tests 3. Zinc Coating Thickness Test

4. Wire Mesh Cable Tray SWL (Safe Working Load) Tests

Vichnet mostly promote their products online as they sell B2B (Business to Business) in most cases. Their website is very well designed and easily used by a person with average technological ability. The website is decorated in a bright orange colour and the text is well delivered in both English and Chinese. Vichnet also have similar sites on larger online shopping sites such as Alibaba and TaoBao. The firm joined Alibaba in 2008 and has been successful ever since. Certificates for quality and official status are also displayed on the site to reassure the consumer.