Case Study of Haagen-Dazs

1. Abstract

The project reports on the global marketing of a case study of Häagen-Dazs in China. Comparing the business relationship involving Chinese and Western pattern. By analysing the highly competitive ice-cream market, Häagen-Dazs managed to position itself as a super-premium brand. This report showed that although the products are performing very well, there are a few threats that can affect Häagen-Dazs's future, such as: changing environment, local competitors or healthier substitutes.

The most important point is the fact that most of these threats cannot be controlled; however with the help of innovation and product development, which are part of the company's foundation, they can easily be faced. It was noted that Häagen-Dazs has a strong competitive advantage which enables the brand to differentiate itself from its rivals and offer the most indulgent treats in Chinese market.

Key words: Häagen-Dazs, China, Adaptation, Ice Cream

2. Introduction

China is considered the factory of the world, China accounted for 13.2% of manufacturing in the world and is set to overtake the United states as the primary location for manufacturing. Manufacturing in China facilitates access to low-cost raw materials and cheap labour, which appeals to Western manufacturing companies. Western companies can outsource to China either through contract manufacturers or wholly owned subsidiaries of parent Western firms. Western companies encounter various challenges in outsourcing production to China. The World Bank published an annual report on countries favourable for conducting business and among the more than 160 countries listed, China ranked poorly.

China has been under the Chinese Communist Party's rule for several decades. The Chinese Communist Party exercises absolute power over legislation and economic and cultural institutions. Unlike Western economies where the government promotes transparency for conducting business; in China, the rules and regulations are not transparent or absolute. Large manufacturing encounter various regulations and bureaucracies. In China, a social network called guanxiwang prevails, where guanxi is the relationship between an individual and the entities in the network. Because of the corruption lack of transparency in China, gaining the support of a guanxiwang with people from the China Communist Party can help Western businesses avoid the red tape and bureaucracy

Unlike in the West, where building relationships has less importance because of the strict laws and a culture that supports contractual obligations, in China, people must rely on their guanxiwang. For a Westerner without guanxi, entering