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  • May 2010 (Revised June 2012)
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From Imitation to Innovation: Zongshen Industrial Group

By: Willy C. Shih and Nancy Hua Dai
  • Format:Print
  • | Pages:19
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Abstract

As Zuo Zongshen drove the transformation of the Zongshen Industrial Group from an early imitator in the motorcycle business to a company that increasingly focused on innovation as a way to get out of the hyper-competitive commodity business, he continually faced new challenges. The company had become a leader in gasoline powered motorcycles and small gas engines, but increasing taxes and restrictions on the use of motorcycles in congested urban areas had spawned a new industry, electric motorbikes, which posed a threat to the company's core business. Sourcing the technology for these e-bikes, and hiring and retaining the management and creative talent the company needed, were continuing challenges. The case traces the development of capabilities in the Zongshen Industrial Group, how it used the early imitation phase to foster rapid technological learning and upgrading, and how it used a unique corporate structure and listing strategy to finance the acquisition of important technologies.

Keywords

Experience and Expertise; Learning; Investment; Disruptive Innovation; Knowledge Acquisition; Organizational Change and Adaptation; Organizational Structure; Competitive Strategy; Manufacturing Industry; Motorcycle Industry; China

Citation

Shih, Willy C., and Nancy Hua Dai. "From Imitation to Innovation: Zongshen Industrial Group." Harvard Business School Case 610-057, May 2010. (Revised June 2012.)
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About The Author

Willy C. Shih

Technology and Operations Management
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Related Work

    • May 2010 (Revised June 2012)
    • Faculty Research

    From Imitation to Innovation: Zongshen Industrial Group

    By: Willy C. Shih and Nancy Hua Dai
Related Work
  • From Imitation to Innovation: Zongshen Industrial Group By: Willy C. Shih and Nancy Hua Dai
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