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Hanbao One’s Expansion Strategy: Reaching Small Clients

Yanan Dong, Jing Chen, Juan Li, Yini Zheng, Qinggang Meng

Product #:W41993
Supplier:Ivey
Discipline:Operations Management, Strategy
Setting:China, 2019
Details:Case (PDF) • 16 pages • 2025-04-25

Subjects:

Supply chain managementLeadership and managing peopleBusiness managementManagementOperations and supply chain management

Industries:

Food and beverage sector

Geography:

ChinaAsia
Your Price:$9.71

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Hao Liang, the founder and chairman of Zhengzhou Hanbao One Food Co. Ltd. (Hanbao One), convened a meeting with senior management at headquarters to discuss the company’s future development strategy. Founded in 1991, Hanbao One had become a major supplier of hamburger buns to large Western fast food brands in China. But consumer demand for more diverse and health-oriented bakery products had begun to grow along with the popularity of baked goods in coffee and tea houses, Chinese restaurants, and online delivery platforms. Recognizing the importance of catering to these emerging small clients, Liang faced a critical decision: should Hanbao One continue prioritizing large clients or shift its strategy to expand its reach to small clients?

Learning Objectives

This case is suitable for undergraduate- and MBA-level courses in operations management, supply chain management, marketing, and strategy management, particularly in discussions of production operational efficiency and process improvement. It is also valuable in courses on business management and enterprise strategy analysis. By working through the case and assignment questions, students will be able to do the following:
  • Analyze the opportunities and challenges facing bakery enterprises in China’s bakery market.
  • Discuss strategies for bakery enterprises to expand their market reach.
  • Identify and understand the opportunities and challenges facing Hanbao One.
  • Understand the pros and cons of Hanbao One’s continued engagement with large clients versus expanding to smaller clients.
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Case Study: Hanbao One’s Expansion Strategy: Reaching Small Clients (English version) | Ivey Publishing