Market Entry Strategy
This client wished to utilise a core business by-product to play further down the value
chain and maximise its returns and improve its margins
Sector: Manufacturing
Service: Strategy, M&A
Context
This sugar manufacturer produced significant by-product volumes of ethanol. It identified an opportunity for additional revenue generation playing further down the value chain.
It wished to prepare a feasibility study to determine which options were available to it to monetise its ethanol most profitably and then prepare a business case to give effect to its chosen strategy.
Approach
We assisted the client to select product categories for its ethanol. These categories needed to be matched against volumes and revenues in selected markets.
Once product categories and markets were selected, deep dive analyses were undertaken to confirm size and growth opportunities.
Various market entry options were developed to achieve the client’s growth ambitions. These included
decisions on build / buy / partner, market positioning, pricing, routes to market, and capability enhancements.
Key choices were made and a detailed Business Case and implementation plan was developed.
Impact
The Board approved entry into this new market and the business is currently being stood up with market entry expected in 2024.