Insight Into The China Construction Market

The Challenge: A strong North American supplier of construction products saw the rapid growth in construction in China, and wanted to identify whether it could realize success in that market.

Assessment: Blue Canyon developed detailed insights into the evolution of China’s construction market, examining the roles played by Chinese government and private sector organizations as well as by global organizations. The use of various construction technologies was examined and linked to assessments of the potential for various construction products, including this supplier’s products and several competing technologies. The competitive environment was also examined, including both domestic and global participants. Assessments were done on a regional basis, spotlighting the factors that were unique within each of China’s geographic regions.

Strategic Solution: The information gathered by Blue Canyon enabled a better understanding of the market potential within China and of the critical success factors that would be relevant to the ability to meet customer demand and to position effectively vis-a-vis the competition. Certain high-potential market segments were identified based upon growth, technology relevance, and relationships with global engineering and construction customers who were themselves beginning operations in China.

Results: The firm accepted and implemented action plans based upon detailed recommendations as to targets, product priorities, pricing, competitive positioning, brand positioning, and other factors. China operations were established, and have been growing rapidly in the subsequent four years. The firm has subsequently created several joint venture relationships that have enabled it to expand its presence beyond the segments initially targeted.

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