Case Analysis Of Sany

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1. What corporate diversification strategy is being pursued by Sany? What evidence do you have that supports your position? The Sany Heavy Industry Co. Ltd might be a company pursuing a low level of diversification which uses a single business corporate strategy. Being one of the fifth largest producers of this type of equipment globally emphasize its focus is on heavy equipment manufacturing. However, due to the competitiveness of the heavy equipment industry, companies often must innovate with greater levels of diversification, only with that come with continuing growth and success. Alternatively, the most significant innovation is the multidivisional structure which is also known as (M-form). This structure consists of a corporate office…show more content…
In Sany, there are four core businesses with a separate division in charge of each type of heavy equipment it manufactures (Cranes, road construction machinery, port machinery, pump-over machinery). Each core businesses are using the same technologies to produce with similar equipment, there are similarities in the processes and equipment for certain parts too. Hence, there is a transfer of knowledge across these businesses and so Sany might also be considered as company engaging in moderate diversification in the form of highly related controlled diversification 2. How does the level of change in gross domestic product (indicator of country economic health) influence a firm like Sany? The demographic segment is commonly analyzed on a global basis because of their potential effects across countries’ borders and so the level of change in GDP (Gross Domestic Product) might affect global companies. For Sany Heavy Industry Co. Ltd, a Chinese multinational heavy machinery manufacturing company, the GDP growth in domestic and overseas countries has significant effects on…show more content…
Sany has been luring many of their staffs and one of the employees they lured was John Lanning who was the key engineer behind the crawler cranes manufacturer. Sany targeted Manitowoc's employee John Lanning due to his knowledge of the technology and because of this poaching incident, it has led to following patent and trade secret infringement case between Sany and Manitowoc. For a company like Sany, which has spent a large amount of money on R&D with the intention to be a technological leader in its industry was deeply affected by it. Sany wants to show its competitors that not all Chinese companies are using imitation strategy instead it wants to show that Chinese company is capable to be innovative through investment on R&D. However, due to the ongoing violation of intellectual property rights, it has led to negative publicity with buyers of heavy equipment and other manufacturers. Besides, Manitowoc has brought the case to federal court and if the Manitowoc win the patent infringement case, it will stop Sany from selling any equipment is manufactured using any of the stolen trade secrets in the US, the market that Sany want to enter. According to the current state, Sany was ultimately barred to sell any of the crawler crane equipment it intends to sell in the US with the court rulings and this has affected its growth prospects outside of
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