Case | HBS Case Collection | February 2008 (Revised July 2008)

Wanxiang Group: A Chinese Company's Global Strategy

by Regina M. Abrami, William C. Kirby, F. Warren McFarlan, Keith Chi-ho Wong and Tracy Manty

Abstract

With an almost forty-year history as a business in China, the Wanxiang Group has navigated through the significantly different political and economic changes in China to succeed as a global leader in the auto parts industry and to develop into a broad business conglomerate. Beginning in 1994, when it first began its operations in the United States, Wanxiang started to expand its role as a parts supplier into a discerning acquirer of distressed companies in the U.S. While it saw acquisition as an exciting means for growth, company strategy at its Hangzhou, China headquarters also included vertical integration with a goal of developing a full-on electric car. Were these two goals divergent or complementary: mutually supportive or exclusive?

Keywords: Mergers and Acquisitions; Business Conglomerates; Global Strategy; Business History; Growth and Development Strategy; Vertical Integration; Auto Industry; Hangzhou; United States;

Citation:

Abrami, Regina M., William C. Kirby, F. Warren McFarlan, Keith Chi-ho Wong, and Tracy Manty. "Wanxiang Group: A Chinese Company's Global Strategy." Harvard Business School Case 308-058, February 2008. (Revised July 2008.)