Wanxiang Group: A Chinese Company’s Global Strategy

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Case Write-Up - Wanxiang Group
Michael Porter, a Harvard professor and a renowned author, proposed strategies that organizations can utilize to realize their competitiveness in an industry sector: cost leadership and differentiation (Ali and Anwar 42). In the case of Wanxiang Group, the strategic method deployed from the beginning has mainly focused on quality and talent to differentiate itself from others, thus identifying itself as a differentiator (Abrami et al., 4). The competitiveness of Wanxiang can be attributed to its major focus on talented human capital and its investment in quality products to help it differentiate itself from other global industry players.
The U.S. companies sourcing parts from Wanxiang Group have major benefits courtesy of their model that uses the Just In Time (JIT) process. This allows the companies to offload the production risks to the supplier; even as the product specifications keep on changing, the liability lies with the supplier, that is, Wanxiang Group. Thus, Wanxiang Group helps U.S. companies offset the liabi...