Competitive Intelligence

Emerging Chinese Competitors

Situation
  • Leading electronics and consumer electronics company with over US$50 billion in annual revenues
  • Over the past 30 years, market leadership in consumer electronics has shifted from Europe/US, first to Japan, and then to Korea/Taiwan.
  • Chinese companies with a strong position in the domestic market are starting to emerge as competitors on the global stage
  • The client wanted to assess the risk of leading Chinese companies forcing the client out of global competitiveness in key product categories
Approach
  • Worked closely with client’s strategy team to develop approach and methodology
  • Identified main competitors with the strongest capabilities for global expansion
  • Mapped capabilities, strategies and objectives of leading Chinese competitors in key product categories
  • Assessed the likelihood of competitors reaching targets within specified time periods
  • Developed regional and global market share scenarios for specified periods
  • Approach relied on extensive industry interviews
  • Primary research conclusions fed into quantitative scenario-based model forecasting market shares
Result
  • The project deliverables gave the client a clear picture of the competitive strategies of each of its key competitors, including their future product category and geographical focus; this was in itself an important deliverable given the previous lack of reliable information about Chinese competitors.
  • Our scenarios identified, for each of our client’s product categories, which regions and countries were most at risk.
  • The client is currently developing response strategies for the threats identified by our team.
  • The client is also looking at how it can build some of the strengths that the Chinese competitors have developed in the local Chinese market.