Project "MEL"
Success story
Corporate strategy as a key for sustainable development
Operating in a highly competitive market is a challenging task for any business. Building specific business strategies is an absolute necessity to increase the odds of success in these dynamic environment. Understanding the importance of having the business strategy,
RB Asia offers creative solutions that can help companies to develop winning strategies to achieve consistent and long-term growth. Clear and well-reasoned strategy can help to avoid risks, identify growth potential, manage resources, and increase business sales.
As an example of our work, we would like to present you a brief report from our latest consulting engagement.
About the project:
Within the EBRD’s “Advice for Small Businesses” programme, RB Asia provided strategy consulting services to a calcium carbonate production company.
Our client:
The company was founded in May 2012 and began its production cycle in 2018. The quality of a limestone, used for the production of Ground Calcium Carbonate(GCC) and Precipitated Calcium Carbonate(PCC), has been rated as the purest across Central Asian region.
Challenges:
- Even though there is a lack of competition and a growing demand for a calcium carbonate in a local market, the client`s warehouses often remain with unrealized goods.
- In manufacturing industries where the PCC and GCC can be replaced by a crushed granite, the buyer tends to choose an inexpensive alternative.
Strategy consultants` responsibilities:
- Design company development strategy, which will incorporate shareholders' vision in becoming the market leader and allow the company to attract additional financing.
Our approach:
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Analyzed the global calcium carbonate market, learned chemical industry trends in developing markets, and identified key factors affecting the cost of calcium carbonate.
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Prepared an in-depth research, market dynamics and future forthcomings forecast of the carbonate calcium in the local market.
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Analyzed business models of key industry players, their strengths and weaknesses, the scale of their operations and competitiveness.
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Analyzed the company’s existing organizational structure and how it functions. Evaluated reasons for declining sales, identified the main problem areas, key competencies, and competitive advantages.
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Built a financial model to remark strategic alternatives- assessed the need in additional financing and understood the growth potential of the company.
Outputs:
We identified key priorities for further growth and recommended the following:
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We identified target audience of this business and realized that the company should improve the quality of its final goods. When the quality is better, the company should sell its products to those manufacturing industries, which consume the high-quality carbonate calcium only.
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We developed a detailed marketing strategy and recommended the company officials to pay a special attention for improving distribution channels.
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We encouraged our client to allocate funds for sales promotion (creation of a sales department, a well-chosen sales staff, cooperation with sales agents). This approach is costly, but effective. According to our forecasts, the successful implementation of the strategy will help the business to increase the market share, establish a well-organized and affective supply chain, and become a sales leader in the local market within 3-5 years.
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In addition to the five-year strategy plan, we prepared a feasibility study for the client. Based on this document, the client is in the process of raising additional funds from an international development organization.
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After 2 months since completion of the project the Client received a loan from international credit line on for purchasing new energy efficient equipment.
We came to RB Asia seeking for investment capital. Talking to consultants we realized that we need to have a vision for the growth and must develop a business strategy to attract a foreign capital. As a result, we decided to work together towards the strategy development. Before signing the contract, RB Asia consultants informed us about a grant opportunity for the strategy development within the EBRD’s “Advice for Small Businesses” programme. We applied for this grant, passed the selection process and received financial assistance from the bank. When we were developing the strategy, RB Asia conducted industrial research, learned in-depth about our company, developed a marketing strategy, and built a financial model. We feel happy about the outcome of this tremendous cooperation with the EBRD and RB Asia. I am happy to recommend RB Asia as professionals of business development and investment services.”