Business Strategy of China World Buz

Topics: Africa, Sub-Saharan Africa, Small business Pages: 15 (5172 words) Published: April 17, 2014
Business Strategy of
China World Buz

Student Name: Pan JingWei
Student ID: 13404709

Overview
Brief history
CHINAWORLDBUZ CO.,LTD, generally called CWB, was founded in 2012 by 6 college students in Shanghai, China. CWB is founded as an electronic business company devoted to connecting small business owner in Africa and substantial Chinese manufacturers. The ownership structure of CWB is Sino-foreign joint venture. After five months’ preparation, the chinaworldbuz.com was online officially in August 2012. In the same year October, Mr. Wang FengZhai, the primary founder of CWB, grouped six college students, with 4 Chinese and two Tanzania students, to register the company. Due to lack of initial fund, the company was registered in Hong Kong because of the low register fee. After the tough beginning, mainly because of lacking experience, Wang and other founders reorganized the company and team in generating business. In 2014, Wang acquire two major investment both from entrepreneurs in Wen Zhou, where is full of wealthy people in China. In the same year, CWB finally made the first visit to Tanzania establishing the Tanzania office and conducting promotion. Current Strategy

For the beginning of CWB, the primary strategy is substantial promotion. With the help of good relationship with Tanzania government, CWB possess relationship with more than ten news media agents and operated six introduction and marketing events. The whole process only took two months but the outcome is quite considerable. After promotion, CWB selected target customers and kept track with them. The principal means is to dealing with the long-term cooperation relationship. The short-term strategy is to gathering our strengths and resources to negotiating with local enterprises, middle and large scale wholesalers for business intention. For instance, currently CWB is negotiating with a school for consecutive orders of school supplies like uniforms, school furniture, schoolbags and other education equipment. The primary intention of this order is to establish an operating model to train Tanzania employees to expand business to other schools in order to set up a long-term and steady customers base. Wang called this model as reproducible order strategy, especially for start up companies, to establish one order as model for guiding role in expanding more and more similar business. In addition to school, CWB also conducted a long-term contract with Mbeya City Soccer Club providing them sports goods. CWB also hired local employees to dig out potential customers in electronic products. On the other hand, in long-term strategy, with the help of local government, CWB started to get in touch with their large-scale electric power company, communication common company, in order to acquire future large size order and projects. Major Issues

The first major issue is divergence inside team. One investor Mr Chan, who is a moderate businessman, has a willing to running electric products. Another investor is more willing to importing the mineral products to China from Tanzania, but unfortunately rejected by other founders since this goes beyond the current strategy since the company is not stable enough currently. The African partner has intention in small orders since lacking fund in initial period but was rejected by other co-founders since this is not beneficial to long-term development. However, Wang intended to develop online business after collecting large customer and supplier base for further development. In long-term perspective, on the condition that Tanzania is the stable market for CWB, continuing expansion in Africa is necessary and unavoidable approach. Since this big and future move, members in CWB have not concerned about that. The second one is training issue. Although the company has hired employees in Tanzania, there are no Chinese managers over there. Therefore, it caused the low quality of management and service....
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