Strategy development - business-to-business services

Logistics company wishing to extend supply chain services for electronics customers

• Is the identified supply chain activity an attractive opportunity and, if so, what is the optimum strategy for growth?

• IAMCO gathered and analysed data on the market and competitive environment, and interviewed key industry players to enable an assessment of market attractiveness and of existing competitors. We then conducted interviews with senior management of potential acquisition candidates to profile their businesses and assess their attractiveness.

• OEMs in the electronics industry were seeking to reduce costs for customisation and shorten lead times by focusing on core competences.

• To achieve this, they were outsourcing supply chain management through a small number of strategic partnerships.

• Our client lacked the scale and capabilities to provide the one-stop shop for supply chain management sought by OEMs. In the activity identified by our client as a potential growth opportunity, there were three leading players.

• Before moving towards the provision of a one-stop shop service, our client needed to enhance its logistics offering and improve its information systems.

• The sector identified offered an attractive opportunity, but acquisition of one of the three leading players would be necessary in order to enter this sector.

• An approach to senior management of each of these three companies revealed a significant level of interest in an alliance with our client, particularly from one company. Further discussions were to take place about an alliance / acquisition.