Case: Suzhou Wei Medical Devices Co., Ltd.

Suzhou Weijia Medical Equipment Limited Company is a subsidiary of Weijia Company, one of the largest medical companies in the world, in China. When Suzhou Weijia was built in 1995, its development strategy in China was made to coordinate with its parent global strategies. So syringe was the main product of Suzhou Weijia LTD.Co. There were 8 product lines in Suzhou factory, 5 were for syringe, 2 were for infusion needle, 1 was for anaesthesia kit. But the global pricing strategies made the price more expensive than that of the competitors. Although the products and services were accepted by customers , the profit of Suzhou Weijia LTD. Co. was continuously negative from 1996 to 2000. So, from 2001 the general manager made a series of reformation including price decrease, sales channel widen, employee bestirring and the product accessional value increase. After making these reformation, at the end of 2001,the manager found that the profit of the company was positive, but the syringe had so much inventory that the product lines had to stop working, on the contrary, the infusion needle had so much order that the workers had to work day and night. The factory was in a mass. The general manager has to find a good solution to deal with it.