新加坡国立大学案例大赛范例2(Executive Summary - Cerebration05).docVIP

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新加坡国立大学案例大赛范例2(Executive Summary - Cerebration05).doc

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新加坡国立大学案例大赛范例2(Executive Summary - Cerebration05)

EXECUTIVE SUMMARY RECOMMENDATION We recommend that DragonCare Ltd expand its footprint to Canada through a fully owned subsidiary by the name of “DragonCare Canada Ltd”. Awareness of alternative health medicine is increasing rapidly in Canada. The Canadian Natural Health Products (NHP) industry (Market Size: $2620 million), of which the herbal medicines have a 40% share (Market Size: $1048 million), is growing at 20% annually. The Traditional Chinese Medicine (TCM) segment in particular is highly fragmented with no major brand in the marketplace. Market share of none of the current players exceeds 5%. In this respect, the market condition in Canada is similar to what exists in DragonCare’s current markets and provides DragonCare a good opportunity to create a niche for itself by building a brand on the strength of its scientific research capabilities and experience of operating in such markets. ROLL OUT STRATEGY DragonCare Canada should employ a phased approach in introducing its products, its geographic expansion in Canada and introduction of its full value proposition to the Canadian customers. DragonCare should enter Canada with two patented women’s healthcare products preferably for nutritional benefits immunity development which have the highest demand in Canada. The strategy is to develop these products as DragonCare’s “Flagship” products in Canada. Introduction of other products will be after the “DragonCare Brand” is established. Further, DragonCare should initially limit itself to British Columbia and Alberta since these are the biggest markets for TCM products (51% of people in BC Alberta use NHPs TCM). BC also has a high Chinese immigrant population (380,000 Chinese immigrants i.e. 31% of Chinese immigrants in Canada are in Vancouver, BC), thereby providing an attractive easy-to-tap market for DragonCare. After 3 years of operations in Canada, DragonCare should introduce services in the form of TCM clinics, thereby completing its value proposition. D