Competitive Resilience and Innovation: Fonterra's Strategic Approach to Thriving in the Dynamic Chinese Dairy Market

Abstract

In the Chinese market, Fonterra faces fierce competition with competitors such as Mengniu, especially with the increasing demand for functional, personalized, and healthy products. In response to the challenge of product line similarity, Fonterra should adopt a diversified product portfolio strategy and continue to launch new products, including special functional ingredients, personalized flavors, and innovative products that meet health needs. By reducing reliance on a single product, the company can reduce the impact of market volatility and increase its differentiation against competitors. This strategy will appeal to a wider consumer base, enhance customer loyalty, and effectively mitigate the threat of substitutes. By constantly monitoring market dynamics and competitors' actions, as well as making regular adjustments to its product portfolio, Fonterra will be more flexible in adapting to changes in the marketplace, enhancing its competitiveness and meeting evolving consumer needs, laying a solid foundation for the Company's sustainable growth.