19 March 2007

Sunten

Main products of Sunten
o Dry type transformer (largest production)
o Rector
o Substation
o Switch gear

the transformer!

Sunten was set up in 1988. They have imported technology and facilities from Germany. Sunten also has successfully developed six generations of dry-type transformer products and this is the first in China.

we were given an introduction of Sunten!

Main partners:
o General electric
o Tsinghua university
o Xian Jiaotong university
o Schneider electric

The excitation transformer is one of their best products. They have incurred 160 sales with 40 out-sales. Their sales are either from local or they get others to help them promote such as thru agents. Sales also have been increasing continuously over the years. However, their prices are slightly higher by 5% to 10%. The reason is because their products are of better quality and the customers also trust them the most. Many big companies such as Toyota also uses their products.

A company no matter what will definitely face obstacles and challenges. Sunten is no different. They have difficulties getting raw materials as copper price has increased. Steel price has also increased as well to double or triple the pricing. Another obstacle faced is that there are many competitors in this industry. By pricing their products lower, it would also affect the market share of the company. There are also internal problems such as limited capital and control of employees.

Knowledge of culture is important. Guanxi is also important. Therefore, have to get locals to enter the company so that there will not be much variation. Thus business can be set up more smoothly. Also, studying of business environment first is also important.

The most important thing is the quality of the product! Once there is good quality in the product, there will be brand recognition too. This is more important as it is long-term as compared to short-term promoting.

They also attract foreign investors by giving tax incentives. Thou this is only short-term to those foreign investors.