Content area
Full Text
Executive Overview
Shenzhen Taitai Pharmaceutical Industry Co., Ltd. is a privately owned company in Shenzhen. Established as a start-up in December 1992, the firm became one of the fastest growing pharmaceutical companies in China with over 1.600 employees and estimated sales in 1998 of 660 million RMB (approximately $US 84 million). From 1995 to 1998, the company maintained a growth rate of more than 30 percent in sales revenue, and has consistently been one of the most profitable Chinese pharmaceutical companies. Its core product. Taitai Oral Liquid, was the first liquid medicine based on traditional Chinese medicine for women. (Taitai means wife in Chinese.) The company has won numerous national and international awards for the product. including the Unique Golden Award at the Singapore International Beverage Exhibition and the International Beauty and Health Technology Interchange in 1993. The product was recognized by the Chinese Academy of Quality Detection and the Domestic Product Recommendation Committee as one of the best products in China. It also won the Golden Award in 1994 at the International Women, Children, and Household Utensils Exhibition, and first prize in Medical Science and Technology Advancements of Guangdong Province. The firm's mission is to be the leader in sales, market share, and profit margin in China's pharmaceutical industry. In 1997, the firm diversified and acquired a state-owned firm that produces Western pharmaceuticals.
Baoguo Zhu is chairman of the board and chief executive officer. He is the former director of a state-owned chemical firm and has undertaken several entrepreneurial start-- ups since economic liberalization became acceptable in China. Zhu was recognized as one of the 10 best young entrepreneurs in Shenzhen in 1998. and is the director of Shenzhen's Young Entrepreneurs Association. He holds a bachelor's degree in chemistry.
Would you please describe the history of your company? What were the characteristics of each stage in the company's development?
Our company had three distinct stages. Initially, in 1992 our firm was established by a few investors during the relatively early phase of the economic reform process in China. During this stage, our major business focus was on specialty chemicals. We focused on that area since my university degree and business background were in chemistry. However, we met with numerous difficulties. The biggest...