Market assessment and business plan development for a new e-payment initiative in UAE
A UAE based company required an understanding of the size and behaviours of the market for its greenfield venture of creating a comprehensive online bill payment system for the UAE and ultimately the Middle East region. The company asked PwC to assist with developing a comprehensive business plan in order to provide some strategic value by helping raise finance from target sources.
PwC assessed the market by evaluating the billing environment in the UAE, based on a detailed review of the underlying drivers and through conducting comprehensive surveys which were focused on both individuals and corporations. The results were segmented by individual income levels and corporation size in order to evaluate the potential uptake by each consumer group segment.
The team also leveraged the PwC network and held discussions with potential strategic partners which included major financial institutions, utility companies and government entities.
The client was provided support in developing a business plan and a financial model based on the market assessment findings. The market opportunity was validated, based on a detailed assessment of the total addressable market, resulting in potential future revenues for the initiative.
PwC's assessment helped the client plan its market entry strategy and target the most relevant customer segments. They also used PwC's findings in the design of the operations and marketing of their project.
Design a roadmap for the scaling up of the logistics infrastructure and network optimisation for a leading consumer electronics and hand held products company in India
The client had completed a sales blueprint which was to take it to three times its' current size. Given the supply chain bottlenecks, it wanted an independent assessment of its logistics partners (LSPs) to assess their capacities and identify strategies to overcome shortfalls in meeting the 2015 targets. Also, given the increase in volumes and considering the existing warehouse network, the client wanted to achieve a reduction in channel inventory and secondary lead time by optimising its warehouse network.
For the client’s logistics infrastructure assessment, PwC used a combination of internal (to the client) and external levers to test the feasibility of various strategies to bridge the gap of the future primary transportation requirement and employed linear modelling to estimate the optimal warehouse network. This included considering supply chain costs, taxes and service levels.
PwC equipped the client's logistics team with a dynamic tool developed to calculate the number of trips and vehicle requirements for the primary and secondary logistics. Lane-wise implementable strategies were developed to meet the infrastructure gaps. Strategies included fleet mix change, mode-mix change, and TAT improvement, in addition to an augmentation of capacities by existing & new transporters.
PwC also assessed the gaps in air freight movement and recommended strategies for bridging the shortfall. TAT improvement in addition to an augmentation of capacity by existing and new transporters. A roadmap for setting up the proposed network was also shared with the client.
Market entry and partner search for a Japanese material handling equipment company looking to enter Brazil
The material handling equipment market in Brazil is controlled by a few key players. The country’s increased investments in infrastructure due to the 2014 World Cup and the Olympics appears as an opportunity for increased revenues in this market. To tap this market potential, the client was seeking to rapidly penetrate the Brazilian market through the acquisition of a key Brazilian player in the material handling equipment market. They wanted to conduct a quick business due diligence in order to validate their concerns over the target and decide whether or not to continue with the acquisition process.
The PwC team evaluated the strategic alternatives for the client's market entry including imports, partnerships and acquisitions, together with a valuation model of potential partnership scenarios. The team also gathered and analysed available data (internal and external) from the target focusing on relevant aspects for the client.
Following this study, client had a better understanding about target’s operations and strategies as well as the market of material handling equipment in Brazil. Based on PwC's assessment, the client decided not to make an acquisition, but instead strengthen their imports strategy for the Brazilian market by expanding their local distribution network.
Market opportunity assessment for an international bank headquartered in London looking to enter Libya early in the post-Gadhafi transition
The bank wanted help to manage the risks of making a strategic decision to engage with Libya at a time when the dynamics of the political transition in Libya were extremely fluid. In particular, it wanted to understand who were the key individuals in the Libyan central bank, and whether they posed a potential reputational risk due to their history and past associations. The bank was also conscious of the need to understand how various scenarios for the transition might affect its decision-making and risk mitigation strategies. The security situation - closely linked to political developments - was also a significant concern for the bank's risk and compliance committee.
The PwC team undertook an in-depth analysis of Libya's political and security landscape, mapping the key actors at the national and regional level, explaining the timetable for political transition and the role of the National Transitional Council, militias and military councils. The team also conducted enhanced due diligence on the Central Bank of Libya and its senior management, drawing on a wide range of open sources and human sources in the business and diplomatic communities both within and outside Libya.
PwC's analysis provided the bank with an objective and carefully sourced assessment of the business landscape in Libya. Our presentation to the banks risk and compliance committee allowed for informative discussion and debate of the key issues and areas of concern for the bank, allowing it to make a considered decision on the balance of risk and reward in the Libyan market.