BUS 365 Final Project Draft 2

BUS 365 Final Project Draft 2


Hi my name is John Harashinski. The
dairy industry worldwide is a massive enterprise yet there’s one disruptor
coming into the market right now which could prove to be a lucrative investment
in the future. That company is Oatly a Swedish based oat milk company which has
expanded into Western Europe the United States and now has its sights set on
China. Today I’m going to tell you why the Chinese dairy market is right for a
company like Oatley to interject them next I’ll tell you more about Oatly’s overall mission and then finally I’m going to conclude with a few concrete
ways in which we can help Oatly’s mission to expand in China. So first let’s talk
about the market itself. In China out of every ten people there are only one of
them has the necessary enzymes to digest lactose. That is to say that 90% of the
Chinese population is lactose intolerant. Yet this comes at the same times of the
Chinese diary industry is booming. Over the past 10 years in industry has grown
from 27 billion dollars to 61 billion dollars. Yet at the same time co2
emissions are rising with dairy production. The more milk that is
produced the more co2 that is emitted and we all know this is not good for global
warming. Yet this is where it Oatly has a unique standing. Not only it does only
come from oats which means that those who are lactose intolerant can digest it
but it also produces a lot less greenhouse gas than whole milk. For
example for every glass of whole milk you have there’s 0.62 kilograms of co2
emitted whereas for oat milk it’s 0.19
kilograms of co2 emitted per glass. This gives Oatly a unique opportunity to not only
solve a problem but to be sustainable in the future. So this puts Oatly in a very
unique position and they understand this and they are moving on it. In fact Oatly
has partnered with Starbucks in the city state of Hong Kong to become their
official milk substitute partner. Any Starbucks you walk into in Hong Kong
will have Oatly there as the milk substitute.
Yet this is happening at the same time that Oatly is trademarking their own
character in the Chinese alphabet for oat milk. Previously there was no
character available but Oatly is so committed to expanding into China they
are literally expanding the Chinese alphabet.
Not only is Oatly planning a cultural shift but also a logistical and physical one
as well. Recently they’ve opened up an office in Shanghai and have plans to
expand production plants into mainland China alongside leveraging their
relationships to expand into mainland coffee chains and grocers to really make
that Oatly Chinese character a household name. So there are a few things
that we can do to really capitalize on this opportunity. First we can assist
Oatly and raising capital and providing logistical support for their expansion
of their supply chains. Currently Oatly is shipped into Hong Kong which is not
sustainable for long-term expansion. By assisting them in building mainland
plants we can ensure there is a flow of Oatly across the country. Next we can
also leverage our relationships to help Oatly expand into those national coffee
chains and national grocery stores ensuring that the new Chinese character
for oat milk becomes mainstream. The dairy industry is not constant and there
is disruptor coming up. Oatly, by and large is one of those companies that is unique
and it’s something that we should take an intrinsic look at before it’s too
late. All that being said the only question I have for you all is Got oat milk? Thank you

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