Case 2 :Dairy Industry
An international mutual fund wished to gain an overall understanding of the listed companies, overall industry dynamics and future development trends of Chinese dairy industry. Our client specifically requested for experts who can comment on the impact of recent events in the dairy industry, such as tainted milk scandal and price decline. The key questions were:
- Please discuss the competitive landscape in dairy sector. What are the key differentiations or competitive advantage of each of the top players?
- What is the global development trends of the dairy industry? Any M&A possibilities?
- Is the government likely to intervene or issue new policies?
- What is outlook on dairy pricing in the near and long term?
Based on client’s needs, CIC recommended a former executive of a public dairy company and a senior merchandizing manager at a large chain-hypermarket to discuss the competitive landscape and impacts of recent events to the dairy industry. They also analyzed the competitive advantages of the top players and offered insights to the upstream dairy farm and the distribution channels. CIC also engaged a 20-year industry veteran in Australia to discuss oversea market and potential M&A activities. Finally, an expert from government research institute offered his view on potential government policies.
Benefiting from CIC’s strong network, our client was able to gain a thorough understanding of the dairy industry and obtain insights on the impact of the latest events. This knowledge allowed our client to make a well-informed investment decision in the stock market.