Case Study: How Danone and Wahaha, which have all to success in China failed?
- `Presentation of the case
- Danone: The conqueror
- Creation of the China JV
- Problem appears in the ?perfect? Joint Venture
- Litigated cases
- What Danone should have done?
- Why this joint venture was a Failure
- Loss of trust
- Different laws, different cultures
- Manage your JV, don't let Chinese
- Comparison of Hofstede's model
We are in 1996, DANONE is the number one dairy in the world, and after a merger with BSN in 1973 it became the first food company in France.
Danone achieves many conquests overseas markets; they also carry a lot of mergers and acquisitions.
Already in 1989, after the fall of the Berlin Wall, Danone sent several experts to analyse and capture the market of Eastern dairy products, biscuits and mineral water. They perform several joint ventures in Russia and the Czech Republic.
This is in line with their global conquest Danone wishes to settle in China. They want to sell their products by creating a joint venture. This year, Danone reaches the turnover of 83.9 billion francs.
They perform a joint venture in China with a large partner: Wahaha, China's leading beverage with the president Mr. Zong Qinghou one of the richest man in China, who is also a member of the Chinese Communist Party, with many influence.
So in February 1996 Danone started to conquer China with a new big partner size: Wahaha.