The growing process of Changhong, a representative Chinese home appliance enterprise, is described in this paper. Changhong succeeded in transforming from a former state-run military-radar factory into China’s leading consumer-electronics manufacturer. However it has been experiencing hardship since 1998 and reported significant losses in 2004.The success and failure of Changhong marketing strategy are expounded.This paper reports Changhong’s recent efforts in strategy shift. It shows Changhong is attempting to integrate upstream and downstream resources, and trying to use logistics and supply chain management as competitive business weapons, faced with new challenges in the high-end products market.
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