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1、strategy+businessforthcominginissue67summEr2012China’sMid-MarketInnovatorsAnewcategoryofcompetitor—low-price,medium-qualityChineseB2Bupstarts—isshakinguptheglobalcompetitivelandscape.byEdwardTsE,JohnJullEns,andbillrussopreprintessayglobalperspectiveHang,thecompany’schairmanandglobalperspec
2、tiveco-CEO.Notbadforacompanythatbeganasalow-costproducerinanunderservedChineseB2Bsector.AnothersuchcompanyisShanghaiElectricGroup,amakerofpowergeneration,transmission,anddistributionequipment,alongwithheavymachineryandpublictransportationvehicles.Foundedinthe19thcentury,itestablisheditself
3、inthe2000sasaglobalplayerintheenergyandconstructionequipment32industry.ShanghaiElectric’sstatusasastate-ownedcompanygaveitaccesstoChina’sdomesticmarket,China’sMid-Marketbutthecompanyalsodevelopedca-pabilitiesforproducingreliable,low-pricedequipmentaroundtheworld.InnovatorsIn2010,forexample
4、,thecompanyreacheda$10billionagreementtosupplyIndia’sReliancePowerwithAnewcategoryofcompetitor—low-price,coal-firedgenerators.medium-qualityChineseB2Bupstarts—isMindrayandShanghaiElectricshakinguptheglobalcompetitivelandscape.areexamplesofanewtypeofindus-trialcompanyemergingprimarilyinChin
5、a.Wecallthemmid-marketin-byedwardtse,JohnJullens,Mindray’sambitionsgrewaccord-novators,aftertheburgeoningmid-andbillrussoingly;itcompetedwithincreasingdlemarketofChineseurbanandsuccessintheglobalmedicaldevicesruralbusinessesandgovernmentof-hina’slargestmakerofmed-market,rapidlygainingmarke
6、tfices,whichweretheiroriginalcoreicalequipmentisMindraysharebyofferingmonitoringandcustomers.Somemid-marketinno-CMedicalInternationalLtd.medicalimagingsystemsatpricesvatorsareprivatelyheldcompanies;BasedinShenzhen,thecompanythatweretypically40percentlowerothersarestate-owned.Theyareallwasf
7、oundedin1991toserveChi-thanthoseofmostincumbents.inintensecompetition,oftenwithnesehospitals,which,especiallyinIn2008,Mindrayboughttheoneanother,whichforcesthemtoruralareas,couldnotaffordmanypatientmonitoringdivisionofthebefrugal,nimble,andresponsive.basicmedi
