TIDIY Ceramics: Transforming a Traditional Manufacturing Business

Yu Zhang, Chi Zhang

科研成果: 其它稿件案例

摘要

This case examines how a traditional manufacturing company can be challenged by a new market environment and its strategic options. The company in this discussion, TIDIY, is a middle-sized ceramic tile company based in Foshan. In 2014, TIDIY split from Oceano, a sibling brand under parent company Teda, and became an independently managed entity. TIDIY's restructuring coincided with major changes in the construction ceramics market in China. As such, TIDIY faced a market that was fundamentally different to the one in 2004 when it was founded. Once rapid growth had slowed, overcapacity and product similarity created fierce competition, and the industry was fragmented. The preferred sales model also changed from selling via distributors, to strategic partnerships with large real estate developers. Newly independent TIDIY had to find its own path. Compared with better-established competitors, TIDIY's brand awareness and access to capital were limited. What should TIDIY do to achieve differentiation? This case explains how TIDIY leveraged anion technology and "charted itself a new path". Company chairman Feng Hongjian and Managing Director Li Qiang renamed the brand "TIDIY Ceramic Tiles", upgraded stores into anion experience centers and sciences museums, trained distributors' salespersons, engaged designers, improved customer satisfaction to create positive word-of-mouth, iterated products. He implemented various policies to provide strong organizational support. These strategies enabled TIDIY to grow by 37% during the first year after independence. TIDIY then set itself a goal to double its revenue in three years. To this end, TIDIY identified three possible strategies: investing in R&D and inventing tiles with new functions, applying anion technology to products other than tiles, or expanding its business scope to the health industry. What might be the right strategy for TIDIY? This case will help students understand the challenges and strategies of transforming a traditional business.
源语言英语
页数11
出版状态已出版 - 30 6月 2021

案例编号

STR-21-797

案例规范编号

STR-21-797-CE

案例类型

Field Case

更新日期

07/03/2023

附注

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来源

China Europe International Business School

案例学科表

  • 战略

案例行业表

  • 制造
  • 建筑

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