Having acquired many U.S. companies, Wanxiang wanted to keep local brands that could be seen as more creditable by customers than the Chinese ones. Thus, Wanxiang allowed its subsidiaries to participate in local competitions as if they were independent since U.S. consumers have more faith in local companies, and Chinese brands may be seen as inferior quality. These local brands add additional value to the parts produced and lend credibility to the quality of production processes.
Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale?
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Academic.Tips. (2022) 'Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale'. 7 October.
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Academic.Tips. (2022, October 7). Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale? https://academic.tips/question/why-doesnt-wanxiang-fully-integrate-u-s-companies-in-order-to-achieve-economies-of-scale/
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Academic.Tips. 2022. "Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale?" October 7, 2022. https://academic.tips/question/why-doesnt-wanxiang-fully-integrate-u-s-companies-in-order-to-achieve-economies-of-scale/.
1. Academic.Tips. "Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale?" October 7, 2022. https://academic.tips/question/why-doesnt-wanxiang-fully-integrate-u-s-companies-in-order-to-achieve-economies-of-scale/.
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Academic.Tips. "Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale?" October 7, 2022. https://academic.tips/question/why-doesnt-wanxiang-fully-integrate-u-s-companies-in-order-to-achieve-economies-of-scale/.
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"Why doesn’t Wanxiang fully integrate U.S. companies in order to achieve economies of scale?" Academic.Tips, 7 Oct. 2022, academic.tips/question/why-doesnt-wanxiang-fully-integrate-u-s-companies-in-order-to-achieve-economies-of-scale/.
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