Brand Bolina Case Study

Brand Bolina

• What were the reasons for a decline in profitability of Bolina?

• Did increase in patents help the firm?

Bolina Holding Company Limited designs and manufactures toilet seats, wash basins, urinals, bidets, squat pans, soap containers, faucets and bathroom fixtures. In 2002, it began as an Original Equipment Manufacturer (OEM) for the international customers and mainly focused on the global market. However, by 2008, the firm developed its own brand ‘Bolina’ as a way to improve profits and enhance its long-term viability.

The company’s total revenue (2009) was CNY 240.4 million, this increased to CNY 913.3 million (2013), but then declined and reached CNY 716 million (2015). The strategy to cut down on external sales and focus on the brand was expected to support the revenue growth, while at the same time strengthen profitability. Although the measures did not go in the desired direction. The total revenue for the company (2016) further

The firm is now planning to add another production line and increase its capacity further. This will help the entity to fetch revenue from its existing big international customers under OEM and ODM, while also realizing its vision of selling maximum products under its brand. The ODM and OEM will always act as a hedge against the company’s inability to sell its own branded products for profit. The firm has taken aggressive steps to strengthen its brand. These steps have not yielded positive results in the past few years. However, in the long run, these steps may prove to be successful. Secondly, a strategy that the company can adopt for further expansion should be the acquisition of competitors rather than adding new production