ChemInt

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Style:
Interviewer-led (McKinsey style)
Topics:
Competitive response , Market analysis , Operations strategy
Rating:
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Problem Definition

Your client, ChemInt, is a global chemicals company that manufactures Ponsulene in some locations around the world.

It has several joint ventures (JV) in Asian markets and in total 5 plants in China, Korea, Thailand, and Taiwan, all of which serve the local markets as well as neighboring markets including China.

Due to the strong demand for Ponsulene and profitable margins in China, a number of new Chinese players are entering the market in China as well as in the neighboring countries.

ChemInt has called in your company to estimate the influences on their business by these happenings.

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Exhibits

ChemInt's international plants

  • kte stands for kiloton equivalent
  • Captive use refers to the number of chemicals that are used in the plant itself (for further production). Therefore they are not sold to external customers.
  • Domestic sales are sales in the same country (e.g. produces from Korean plant sold in Korea).
  • Export volume includes export to both China and other countries. (If interviewee asks about detailed exports to China Table 2 can be shared)

Exports into china

Delivered-to cost

  • Delivered-to-cost means the average costs of production in these countries by local producers.
  • The diagram's main purpose is to understand the Asian market, but it does not directly concern the JVs as they are only partially in the listed countries.

What are ChemInt's stategic options for market participation?

You received additional data

Delivered-to cost

  • Delivered-to-cost means the average costs of production in these countries by local producers.
  • The diagram's main purpose is to understand the Asian market, but it does not directly concern the JVs as they are only partially in the listed countries.

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