A Home Shopping Company has launched a new start-up , a leading brand in distribution. Since its founding the company has been operating mainly in the fields of TV Home shopping and online shopping malls.
The new startup is in the center of this new popular channel. It offers TV home shopping, online shopping mall, T-commerce, M-commerce, and other various channels to provide various products and services.
The company decided to expand its business to the Asia Pacific region. Malaysia has been chosen as the principal country to start their new business due to the favorable business enabling environment, with a good public registry and private bureau coverage.
FULL STORY
The rapid digital transformation of retail value chains over decades has increased market opportunities for business growth in the retail industry.
To seize rare business opportunities, the client wishes to expand their business overseas, which would include the Malaysian market. The client wanted to enter the Malaysian market for home shopping using TV channels and structuring joint ventures with a major local media broadcaster.
Malaysia is fast gaining traction as one of the favourite investment destinations to do business amongst developing countries. Malaysia is considered one of the most advanced developing countries in the world with a favourable investment environment.
Malaysia is located in the centre of Southeast Asia, next to one of the world’s busiest shipping lanes and is well-connected to major cities in Asia. Thus, this would ease the logistics for parcel and product shipping to the client.
The client has engaged the media broadcaster to promote their home shopping business through its broadcasting channel. The media broadcaster in question is one of the top satellite television and IPTV providers in Malaysia.
The company was recorded as achieving 71% household penetration in Malaysia in 2016 and was granted an exclusive license as the sole pay-television provider by the Malaysian federal government until 2017.
The client reckoned that a feasibility study is presently required to support its negotiations with the media broadcaster. The ultimate outcome of this study is to develop a more successful negotiation plan.
With this objective, we were engaged to carry out a detailed market research, market entry, strategic business plan formulation and proposal submission for the client. The scope also included the capital outlay, identifying the key business partners, revenue model, productive talents / human capital strategy and others.
KEY OUTCOMES
We began the study by conducting a visioning workshop with the Client to understand the project vision and expectations of the Client. This had allowed us to ascertain a clear objective of the client that will guide us through the exercise.
The team has conducted macro-economic analysis on major global and regional events that will drive the project’s interest. Our assessment looked at the key industry trends that will drive global telecommunications demands as well as critical industry challenges that are inhibiting the industries growth.
We then conducted a high-level industry value chain analysis on the Telecommunication ecosystem in Malaysia, focusing on the fibre optic cables along the highways. The initial assessment provided several directions for the study team to deep dive into subsequent studies on the demand and supply gaps.
To establish a baseline understanding of the current plan in place, the team has reviewed the relevant Policies & Regulations from the government & regulators on fibre optic licensing, the technical standards and infrastructure requirements for fibre, etc.
The team also worked with the subject matter experts and identified a high-level skill competency assessment of the acquiring target, including the owner, directors and key team members, to assess their talent and skills capabilities.
After analysing all the data available, we then carried out a comprehensive due diligence study on the business plan of the acquiring target to validate the achievability of its revenue target and competency to implement the business plan.
Our evaluation report had substantiated the company valuation and supported the negotiation of a binding term sheet between the Client and the acquiring target.
Important Notice:
*We take our clients’ confidentiality seriously. While we keep their names anonymous, the results are real.
