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Jun Chen

DBA Graduate - 2008

Thesis title

B to B Cooperation in Developing Core Competency in Canned Fruits Industry in China

Supervisor(s)

Michel Polski
This research critically analyzes the supply chain operation issues and business model of Right Dragon, a company operating in the Chinese canned fruits industry, along with its customers and suppliers. Establishing business-to-business (B2B) cooperation among vendors, co-packers and customers provides advantages in terms of developing new products and achieving sustainable growth. This thesis relies on Kotler and Levy’s concepts of “purchase marketing” or “marketing of supply” to link supply chain management (SCM) directly to the marketing process; it also considers concepts associated with outsourcing, agency theory, cooperation games, and transaction theory to investigate the essentials of an ideal supply chain business model. Therefore, the analysis of the business model adopted by Right Dragon considers the strategic reasons for its development of a tiered relationship with customers and suppliers to develop new products and the partnership, system integration efforts, just-in-time practices, outsourcing, the shift from multiple sourcing to single sourcing, obtaining asset specificity through the establishment of a franchise, and electronic data integration with supply chain members. Furthermore, this study compares the strategies implemented by Right Dragon with those of Chinese and overseas competitors in the canned fruits industry. The analysis also includes a comparison with the business models established in the automotive and electric industries, as well as a business model comparison across typical enterprises in Shanghai’s Free Trade Zone. A balanced score card and supply chain operation reference model analysis reveals that the driving forces of the supply chain operation reflect marketing segmentation and business operation strategies, which vary from the vision and mission of the enterprises and remain constantly dynamic.