It was like racing in the fog. They were driving 200 mph, enjoying the ride…but they knew there was a brick wall somewhere.
For this multinational manufacturing company operating in the Chinese tire market, business was booming. To meet the ever-growing demand for its products and maintain its position as market leader, the company had been investing aggressively in additional production capacity. But what would happen if—and when—the market slowed down? How could the risk of overcapacity in the longer term be balanced with the near-term needs to maintain market share and profitability?
Early-warning system and mapping of alternate routes.
After determining possible scenarios based on key factors affecting the Chinese market over the next 10 years, DSI worked with the company to identify potential exposures, develop strategic options, and build a mechanism for monitoring critical industry and geopolitical forces. As a result of our analysis, the company has made significant financial commitments toward developing a flexible, “future-proof” plan—one based on greater strategic agility, enhanced timing of capital investment decisions, and the ability to recognize early indicators of change.