ChinaMarketStudyReviewNovember23,1999CMSGroupInc.CMSGroupInc.2IntroductionIntroductionCMSGroupInc.(CMS)basedinCanadaisinterestedinCMSGroupInc.(CMS)basedinCanadaisinterestedinexploringtheChinesemarketforitsROTORDISKsewageexploringtheChinesemarketforitsROTORDISKsewagetreatmentequipmentandseriouslyconsideringofsettingtreatmentequipmentandseriouslyconsideringofsettingupajointventurewithalocalChinesepartnertoupajointventurewithalocalChinesepartnertomanufactureandmarketROTORDISKequipmentinChina.manufactureandmarketROTORDISKequipmentinChina.InordertoassessthemarketconditionsinChinaandInordertoassessthemarketconditionsinChinaanddetermineitsinvestment/businessstrategies,CMShasdetermineitsinvestment/businessstrategies,CMShasrequestedPricewaterhouseCoopers(PwC)toreviewarequestedPricewaterhouseCoopers(PwC)toreviewaChinamarketstudycompletedbyCMS.ChinamarketstudycompletedbyCMS.3Beforecommentingonthestudy,itisimportanttorecognizethatwearenot“technicalexperts”onthesewagetreatmentequipmentandwehavenotdoneanyspecificmarketstudyonthismarketsector.Accordingtotheletterofengagement,PwC’smaintaskandAccordingtotheletterofengagement,PwC’smaintaskandobjectiveistohelpevaluatethereasonablenessandobjectiveistohelpevaluatethereasonablenessandadequacyofthefindingsintheCMSreportbasedonouradequacyofthefindingsintheCMSreportbasedonourexperienceandunderstandingoftheChinesemarket.experienceandunderstandingoftheChinesemarket.AlthoughthemanyprojectswecarriedoutwerenotabouttheAlthoughthemanyprojectswecarriedoutwerenotaboutthesewagetreatmentequipment,theissueswerelargelyidenticalsewagetreatmentequipment,theissueswerelargelyidenticaltothoseCMSisinterestedin.tothoseCMSisinterestedin.Therefore,wehavereviewedthereportandprovidedourTherefore,wehavereviewedthereportandprovidedourcommentsassumingwhatwewouldhavedoneifCMShascommentsassumingwhatwewouldhavedoneifCMShasengagedustodothismarketstudy.engagedustodothismarketstudy.IntroductionIntroduction4ReviewCommentsTheMethodology5ReviewCommentsReviewCommentsInourview,theCMSmarketstudyisbasedonamethodologyandthesourcesofinformationwhichwillhelpshedsomelightonthe“general/macro”conditionsofthemarket,suchaspolicyanddevelopmenttrends.Butitisdifficulttogainthemoredetailedandpracticalknowledgerequiredfordevelopingarealisticbusinessstrategy.Wefeelthatthestudylackssufficientresearchoftheend-users,suchasresidentialhousingdevelopers,certaintypeoffactories,hotelsofdifferentclassesandlocal/citygovernments.Nomatterthequestionsarequalitativeorquantitative,CMSneedstopreparedifferentquestionslogicallydesignedforthedifferentkindsoftargetintervieweesasmentionedabove.ThiswillhelpCMScomprehensivelyanalyzethemarketsuchascustomersegments,buyingpreferences,availabilityoffunds,potentialcompetitors.6ReviewCommentsMarketDescription7ReviewCommentsReviewComments1.TheCMSreportfocusedontworegions/areas,SichuanprovinceandShanghaiastheinitialtargetsbecauseyouhavealreadyestablishedcontactsandsoldsomeequipmentthere.Fromthereport,wecannottellifyouhaveconductedamoredetailedscreeningoftheothercitiesbasedonanumberofdeterminantssuchas(butnotlimitedto),•Specificcitydevelopmentplansinrespecttoinfrastructure,residentialhousing,hotel/tourism,pollutionlevel,economic/industrialpriorities,funding,income,etc.anddeterminedthatSichuanandShanghaishouldbetheinitialkeyareas.8ReviewCommentsReviewComments2.Weagreewitht...
