Abstract

Over the past ten-odd years, the dizzying prosperity and rapid  development achieved in Chinese Dairy Industrial t actually covered  up a fundamental defect concerning the strategy, which eventually led to the "Melamine Event”. Today, the troubled waters have been poured oil on, but it still needs time to be recovered. China's Dairy Industry, which suffered heavy losses and casualties, is about to seek for a transformation and will have to help himself out of the crisis. This paper will apply the game theory of "Prisoner's Dilemma" case to reflect the strategic defects appeared in the early dairy industrial development, with the combination of the new changes in the dairy industrial development environment after "Melamine Event”, it also points out that the key to revitalize the domestic dairy enterprises is to put the emphasis on the nature of the dairy industry itself, to return to consumers standard, to try to establish the undifferentiated marketing strategy and differentiated marketing strategy system.

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