Case Studies - 2
This is a sample of engagements completed
New Market Development
Situation: The client wanted to evaluate the attractiveness of entering a new market segment dominated by competitors with an existing product.
Approach: The attractiveness of the segment was analysed from a profit growth potential and its unique characteristics, which required formulation of an unconventional entry strategy. A business plan was developed that articulated strategic rationale, financial return, risks and management which was approved for investment.
Results: A new market segment has been created and resources hired to execute strategy. Client feedback suggests growth has exceeded expectations.:
Situation: The client was concerned that there was lost opportunity in several links in the underwriting value chain and wanted to develop a framework and model to define, measure and reduce leakage.
Approach: A methodology used previously to measure claims leakage was modified and tailored to the underwriting process to measure leakage in every element of the underwriting value chain. A software database tool developed by an American company was used to enable the process.
Results: Significant leakage was found in the portfolio and recommendations to implement initiatives reduce leakage to benchmark levels was accepted and in implementation phase.
Situation: The client wanted to evaluate the viability of setting up a new “fee for service” business that could exploit a core competency developed in house without the requirement of additional risk capital.
Approach: An evaluation of the market was conducted and a business case developed to project financials. This included pooling resources across various divisions to set up a separate profit centre while sharing infrastructure with the parent company.
Results: The detailed analysis revealed that internal cost structures did not lend itself to competitive pricing which was required to generate target market share, hence the initiative was been parked.
Situation: The CEO/Board of a listed company (non bank lender) wanted to assess all options to achieve a step change in growth that would lead to revaluation of the company.
Approach: A structured framework was developed and used to assess options to grow organically, product and market development and diversification (including acquisitions). Three options were shortlisted after extended research and qualification through discussions with external parties and presented to the board, which was approved for implementation.
Results: An initiative is under way to acquire target(s) companies and negotiations have commenced.