12. 6 .Strategic Groups (cont’d) National Wide Product Range Geographical Scope Regional Narrow China Ressources Entreprises Huiguan Brewery, King Long, Fujian Huiquan Harbin Group Tsingtao Beijing Yanjing Group
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16. The industry life cycle Introduction Emergence Maturity Decline Demand (units/year) Time
17. Evolution of the life cycle over the life cycle End of Growth / Beginning of Maturity Demand - Mass market - Increasing demand Technology - Improvement of product composition Products - Commoditization - New products Manufacturing - Harbin achieved 90% capacity utilization - Consolidation Trade - Increasing demand imported brewing barley Competition - Bloody competition - Profits fall Key Factors of Success - Brand local presence - Price & Cost Management - Foreign Direct Investment