Business Diversification and Entry Strategy for a Match Consortium

Ma Foi’s Strategic excellence helped a client to step into the landscaping and home gardening industry in the global marketplace by building a robust strategy backed by thorough data

Situation

A privately owned company that exports matchsticks to the African market is poised and focused in opening the doors of International Markets for SMEs by exploring new avenues and strategic initiatives for better growth possibilities in agri and allied sector. The client carries holds a vision to become a complete solution provider for the entire gamut of services in the said sector. The business house was a result of spin off from the parent company founded by a set of technocrats and industry experts. The client appointed Ma Foi to undertake a study on Nursery, Greenhouses, Landscaping and Home Gardening industry, purely based on secondary search focussing on Industry profiling for select industries covering process, demand drivers, market trends and outlook, country profiling for export and their feasibility analysis.

Corrective Action

Ma Foi in the Phase I conducted an attractiveness study for select countries based on important opportunity indicators of each country – GDP, agri and allied  exports and imports, revenue, phase of development of agriculture in the countries, regulatory and quarantine norms pertaining and their relationship between nations. This was followed by finalising and grouping of the identified product, understanding the supply feasibility for the identified products, understanding the demand side for the selected countries, and product mapping against the finalized countries(Entry barriers for the countries were studied for the select products)

Given the market understanding and the challenges, key entry strategies were formulated for expansion in each country considering the Market Characteristics /Driving forces and growth prospects for the various countries across the shortlisted sectors.

Result

Ma Foi formulated a Concentric diversification strategy to identify opportunities for expansion. Under this strategy, we identified the possible new products that are closely related to current products ready to be introduced in current and / or new markets. Depending on how different the new product and new markets are, a variety of more specific growth vectors were identified within the possible diversification quadrant.

Key entry strategies were developed for the identified categories to enhance market penetration and reach the desired goal.