Client

International Agribusiness Company

Project

China Market Research & Strategy

Executive Summary

The client originates, markets and distributes wholesale grains in the U.S. and internationally. Over a period of several years, the client began to experience eroding market shares as a result of increased competitive pressure from Chinese-grown products. Navigate was engaged to investigate the Chinese grain industry and the major Chinese players, as well as the key markets, customers, distribution channels, and economic and political trends to validate the competitive threat and to define a strategic response for the client.

Business Challenge

Due to China’s lower cost of production and labor, Chinese grains sell on the world market at very competitive price-points. Although the client positions its products in the premium market segment, gradual improvements in the quality of Chinese products led to a steady deterioration of the client’s presence in its export markets, particularly in the more cost-conscious emerging markets. Navigate was engaged to research the potential for sustained competitive pressure from China and to devise a strategic action plan for the client.

How Navigate International Helped

Navigate developed and implemented a research program to help the client understand both the push and the pull drivers behind China ’s grain export initiatives. The research included gathering details on production volumes, locations, varieties, key players, supply chain analysis, government policies, and industry trends. Based on the identified trends and market insights, Navigate worked with the client’s management team to devise a strategic response to the competitive threat.

Value Delivered

Navigate delivered a detailed market assessment and competitive landscape analysis of China’s grain industry and a strategy plan for the client’s key export markets. Navigate utilized China-based resources to conduct primary research, leveraging government, commercial and academic contacts to access first-hand and up-to-date market intelligence. Based on Navigate’s research, the client was able to assess the competitive threat and make appropriate strategic adjustments.

“I would like to personally thank the Navigate team for the excellent business intelligence project conducted in China . Your in-country teams and their key contacts in both the political and agricultural arena took us from a level of speculation to a level of knowledge where a strategic decision could be made.”

– President, International Agribusiness Company