Baodao Optical Case Study

y

Case of BAODAO optical

Q1

EXTERNAL

Political: BAODAO optical retail outlets are mostly located in Taiwan and mainland China. Compared with Taiwan where some political movements break out occasionally, the politics of mainland China is more stable. And mainland China has become the main market in recent years. Therefore, the political of these places is relative stable, which is beneficial to the development of BAODAO optical.

Economic: The economic growth rate of China is relatively stable and high, which provides a suitable economic environment for the company.

Social: With the high percentage of school kids with myopia, the optical business is growing business. This market is so huge that could sustain BAODAO’s growth. However, because of the potential growth in this huge market, there is some threats from a great number of competitors.

Technology: With the advancement of IT and internet, there is huge change in online ordering system. For example, the idea to allow customers to try on different frames from the firm’s catalog online (different style, sizes brands, color etc) by using IT and internet interfacing.

Environmental: not much in this case

Legal: The new labor policy of “life employment” to be introduced in Jan. 2008 could make it more difficult for the company to attract and retain the right talents.

INTERNAL

Strategy: In 1981, by merging with other similar retail outlets, BAODAO had established its name in Taiwan. By 2006, BAODAO had become the biggest Chinese retailer for optical products and it was projected that BAODAO could be one of the biggest optical retailer in the world within three years. In 2008, BAODAO adopted its growth strategy by linking with strategic network alliances to expand its market.

Structure: BAODAO had a rather flat organizational structure with three senior executives (CEO, CFO, COO). There were five other heads of departments, responsible for Sales, Research & Development, Human Resources,...