The Internationalization Path of Wanxiang

The Internationalization Path of Wanxiang

Qing Lu (The Logistics Institute—Asia Pacific, Singapore), Yuan Sun (Zhejiang Gongshang University, People’s Republic of China) and Mark Goh (The Logistics Institute—Asia Pacific, Singapore)
DOI: 10.4018/978-1-4666-0065-2.ch009
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Abstract

This case study examines the internationalization experience of Wanxiang, an auto supplier in China. Once at the lower end of internationalization and controlled by its Western partners without its own brands and distribution channels, Wanxiang has managed to climb the ladder of internationalization and taken a greater share of supply chain profits using its coopetition strategy with Western partners. Two mini-cases are presented and discussed in this chapter. The first describes how Wanxiang obtained more direct market access and the appropriation of supply chain profits in competition with its Western partners. The second describes how Wanxiang acquired more sophisticated technological assets for value-addition and managed them astutely. Two important areas were explored: (i) prudent use of diversification for capital accumulation to support capability building; and (ii) management of technology acquisitions and markets by maintaining a proper balance between autonomy and the integration of the acquired business units.

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