This research critically analyzes the supply chain operation issues and business model of Right
Dragon, a company operating in the Chinese canned fruits industry, along with its customers
and suppliers. Establishing business-to-business (B2B) cooperation among vendors, co-packers and
customers provides advantages in terms of developing new products and achieving sustainable
growth. This thesis relies on Kotler and Levy’s concepts of “purchase marketing” or “marketing of
supply” to link supply chain management (SCM) directly to the marketing process; it also considers
concepts associated with outsourcing, agency theory, cooperation games, and transaction theory to
investigate the essentials of an ideal supply chain business model. Therefore, the analysis of the business model adopted by Right Dragon considers the strategic reasons for its development of a tiered relationship with customers and suppliers to develop new products and the partnership, system integration efforts, just-in-time practices, outsourcing, the shift from
multiple sourcing to single sourcing, obtaining asset specificity through the establishment of a franchise, and electronic data integration with supply chain members. Furthermore, this study compares the strategies implemented by Right Dragon with those of Chinese and overseas competitors in the canned fruits industry. The analysis also includes a comparison with the business models established in the automotive and electric industries, as well as a business model comparison across typical enterprises in Shanghai’s Free Trade Zone. A balanced score card and supply chain operation
reference model analysis reveals that the driving forces of the supply chain operation reflect marketing
segmentation and business operation strategies, which vary from the vision and mission of the enterprises and remain constantly dynamic.
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