DuPont-Strategic Change

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1、AgendaTime0Time1Time2Time3BackgroundonDuPontTMandTeflon®DevelopmentofTeflon®non-stickcookwaremarketinChinaEvaluationofavailableoptionsCaseUpdate<19891989-19951996>1996DuPontTMisaglobalindustrialcompanyasamajorproducerofoil,naturalgasandpetroleumproductsandaleaderinhigh-performancemater

2、ials,specialtychemicals,pharmaceuticals,andagriculturalproducts.DuPontTMoperatedinapproximately70countriesworldwide,withabout175manufacturingandprocessingsitesthatincluded135chemicalsandspecialtiesplants,fivepetroleumrefineries,and25naturalgasprocessingplants.DuPontTMhasabout2000tradem

3、arksandbrands.Time0Time1Time2Time3BackgroundonDuPontTMTeflon®’sabilitytoshrugoffwhatevercameintocontactwithitledtotheapplicationofprotectivenon-stickcoatingstopotsandpans.ThismadecookwarefeaturingTefloneasytouseandeasytoclean.In1960s,Tefalfirstintroducednon-stickcookware,usingDuPontTMt

4、echnology.ThefirstmarketswereNorthAmericaandEurope.Asnon-stickcookwarewasaccepted,itbecamepopularinJapanandotherpartsofAsia.DuPontTMactsasarawmaterialsuppliertocookwaremanufacturersbyprovidingTeflonbrandnon-stickcoatings.Inthisapproach,DuPontTMsuppliesnon-sticktechnologytolicenseeswhou

5、sedTeflonbrandcoatingsontheircookware.Time1Time2Time3Time0Teflon®forcookwareIn1989,Teflon®brandwasfirstintroducedtotheChineseretailmarketDuPontTMstartedlicensingagreementswithcookwarecompaniesthatmanufacturedtheirowncookwarefeaturingTeflon®non-stickcoatingsandusedtheTeflon®labelontheir

6、packagingTime0Time2Time3Time1IntroductionofTeflon®inChinaLicenseeManufacturersRighttoaddTeflon®labeltopackagingRegularlicensingpaymentTime0Time2Time3Time1IntroductionofTeflon®inChinaSpentUS$1millionmarketingnon-stickcookwareinChinaSold3millionunitsofnon-stickcookwareinChina(1995)Buto

7、ccupiedlessthan2%ofthedomesticcookwareExperiencedanunexpectedlylowgrowthrateTime0Time2Time3Time1Resultafter6yearsofinvestinganddevelopinginChinaChinaJapanUS3million15million50millionUnitsofnon-stickcookwaresoldTime0Time2Time3Time1Comparisononsalesofnon-stickcookwareinChina,JapanandU