Danone V Wahaha (A): Who is Having the Last Laugh Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In April 2007, Zong Qinghou, Hangzhou Wahaha Group founder and chairman of all its joint ventures formed with Danone, reveals details of the plan Danone buying a 51% stake, is not a joint venture Wahaha subsidiaries and related entities that are owned or controlled by Zong family interests. Disclosure of what should be a commercial secret sparks of a series of public accusations, and then each of the claims against the other partners. On the one hand, Danone indignantly replied that its takeover plan is based on the breach of its contractual interest Zong. Danone claims that Zong has taken many of the same products as a joint venture in the same "Wahaha" brand through a parallel network capacity that he or his family own and operate. He also uses channels of distribution joint ventures for their sale. On the other hand, Zong claims that the "Wahaha" trademark has never officially been transferred to the joint venture and complaining about a lack of effort throughout Danone. He also accuses Danone of trying to monopolize the market of China's beverage to oust national brands such as Wahaha, which are part of China's cultural heritage, and thus, the heart and soul of the Chinese people. As one of the protesters, Zong resigned as chairman of the joint ventures. Danone then assigns Emmanuel Faber, chairman of Danone Asia Pacific, as the new chairman, but denies the legitimacy of the appointment Wahaha. This case illustrates a conflict of interests, practices, and cultural values that foreign investors may encounter with local partners in doing business in China. It also examines the dynamics of the income distribution, control of rights and enforcement of contracts between foreign and local partners. "Hide
by Isabella Chan, Jiangyong Lu, Zhigang Tao, Shangjin Wei Source: University of Hong Kong, 35 pages. Publication Date: June 12, 2008. Prod. #: HKU766-PDF-ENG