Helping one of Asia Pacific’s largest companies to develop an international expansion strategy

Context

After many years of strong growth in its core markets, a large conglomerate in the Asia Pacific region was interested in how it could increase its potential by gaining access to new markets. AlphaBeta was engaged to help the management team determine where they should look for growth (domestic versus international acquisitions), which regions to focus on and how they should manage the risks associated with venturing into new markets.

What we did

AlphaBeta assessed the potential for domestic growth by analysing economic fundamentals in the client’s industries, as well as scanning the landscape for potential takeover targets. The team found that while the client could grow domestically, none of the potential targets met the client’s returns criteria. We then expanded our screening to include a number of economies (comprised of both developed and emerging markets), and selected the highest-potential markets based on a range of criteria. The team then drew from case studies from around the world to determine the most sensible approach to market entry. One of the recommendations arising from our work was that the client “test the waters” with small acquisitions before investing further in the opportunities showing the highest potential.

Impact

The team’s recommendations were adopted by the client’s executive team, and the client has since pursued a number of acquisitions in several of the markets we identified.