Introduction

The client is an international logistics company who was looking to assess potential opportunities for its expansion strategy in South East Asia. The client wanted to establish its presence in the Courier Express Parcel (CEP) markets of selected South East Asian countries - namely, Indonesia, Vietnam, Malaysia, and Thailand. The purpose was to assess the CEP market landscape in these countries and to evaluate the feasibility for potential market entry. In addition, the client also wished to identify suitable CEP players for potential partnerships.

About the Client

An international logistics company.

Business Issue

The client was mainly interested in the international CEP segment. Although the international CEP segment only accounts for a small fraction of market volumes, its value is significantly high, thus representing substantial market potential. However, this segment is currently dominated by foreign integrators, who hold a majority share in this space. In order to enter and effectively compete in the international CEP segment, the client needed to establish local networks and infrastructure, either through the acquisition or formation of joint ventures with domestic CEP players.

Ipsos Business Consulting Solution

The study comprised two phases:

Phase one
The objective was to size the CEP market opportunity and growth prospects for each country, as well as to identify customer segments which presented the most attractive business potential. A total of 1,200 companies were targeted through face-to-face interviews in order to determine customers' usage behaviours and brand preferences.

Phase two
Ipsos conducted a comprehensive partner scan for potential acquisition and joint venture opportunities. Selected players were further profiled and evaluated for the assessment of partnership 'fit'.

The evaluation process involved the engagement of the companies' senior management and key personnel, as well as a thorough review of their business performance, financial records, operational set-up, service capabilities, and investment plans. Players were then evaluated and scored along various business and operational parameters in order to derive the final assessment.

Results

The outcomes of the study comprised a detailed mapping of potential strategic options for market entry, as well as recommendations on suitable players for partnership.

The client was able to use the insights gathered on each profiled player to fine tune the selection of their acquisition targets, and subsequently made investments in one of the selected companies.