The Challenge: A large supplier for the electronics industry was targeting the China market. This company had manufacturing capabilities, but no sales, in China. The firm wanted to understand how to grow effectively in what was perceived to be a rapidly expanding China market.

Assessment: The first phase of this project involved a detailed assessment of the opportunity for this firm and the fit which existed vis-a-vis critical aspects of the China market for each of the supplier’s products. From this work, a specific portfolio was defined for in-depth analysis. For each product in this portfolio, the China market was analyzed in terms of such factors as the customer mix (China customers vs. global firms operating in China) and existing China supplier sources (China suppliers and global suppliers). For several of the products in the portfolio, a China supply chain structure was developed in order to ensure the products could be produced at an appropriate price point and to allow customization to the China market.

Strategic Solution: Blue Canyon recommended that the firm solidify this supply chain via an acquisition and several joint ventures. We identified the most attractive candidates for such initiatives, and helped the firm to initiate discussions with prospective partners. In parallel, Blue Canyon identified the growth segments in the China market in which future demand would substantially exceed the sales of existing suppliers, and helped this firm develop a business case for investments in its China manufacturing base.

Results: Sales in China have expanded dramatically for this firm, and now represent a meaningful component of this organization’s business.