Strategy
PwC Strategy practice helps corporate clients and investors to develop and appraise strategies in both deal and non-deal related situations. We work with our clients on preparing for growth and making growth happen.
Strategy case studies
Market Entry Strategy in Healthcare
Market assessment for a new world-class hospital in Hanoi for a Vietnamese real estate developer
Client’s questions:
- What is the demand for hospital services in Hanoi and the neighbouring provinces in general and high-end services in particular?
- What are the key services the new hospital should offer?
- What should be the proper hospital size in order to capture the current and future demand?
Our approach:
- Conducted an assessment of consumer demand and supply for healthcare services, target market positioning of the hospital, size of potential market. This involved conducting an extensive primary research program, including consumer and doctor surveys, in-depth interviews with doctors and hospital executives as well as health insurance providers.
- Conducted an assessment of key competitors and price benchmarking of key procedures across hospitals in Hanoi, Ho Chi Minh City and other countries in the region.
- Involved a PwC healthcare expert, a former hospital CEO, who has conducted numerous feasibility studies and business plan development for green-field hospital projects in Vietnam, Asia, the US, Australia and Europe to advise us on functional design of the new hospital.
Our answers:
- Identified key demand drivers and estimated addressable market size for the new hospital
- Developed initial concept, size and functional design for the new hospital
- Prepared projections for human resource requirements as well as estimated investment costs for high-technology equipment
Merger & Acquisition Strategy in Retail & Consumer
Commercial Due Diligence of a Vietnamese mobile handset retailer for a Japanese conglomerate
Client’s questions:
- Is Vietnamese mobile handset retailing attractive and growing?
- How does the Target perform in terms of getting ahead of the competition and fulfillment of customer purchasing criteria?
- Are there any sensitivities or vulnerabilities in the Target’s store roll-out plan and online development plan?
Our approach:
- Analysed market drivers, the market size and the distribution structure of the mobile phone retail market. This analysis was supported by an online customer survey with 2,000 respondents with a focus on insights into customer purchasing criteria
- Assessed the target’s competitive position through store visits and interviews with market participants
Our answers:
- Identified and elaborated potential upsides of revenue projections
- Determined vulnerabilities of their store roll-out plan in small towns rural districts
- Identified sensitivities of their online channel development plan
- Provided valuation inputs based on the 3-year forecast on both cost and revenue drivers
Corporate Strategy in Financial Services
Corporate strategy development for a leading commercial bank in Vietnam
Client’s questions:
- How can we become one of the top five joint stock banks in Vietnam in the next 5 years?
- How should we develop and communicate our new vision to foster the broadest possible alignment?
Our approach:
- Conducted a market assessment of Vietnam banking industry and a performance benchmarking with competitors
- Conducted a strategic visioning and initiative workshop with the management to guide and support the strategy decision making process
Our answers:
- Developed a business model for the Client with proposed strategic capabilities
- Established a five year corporate strategy with an implementation roadmap
- Recommended 40 key strategic initiatives needed to support the accomplishment of the corporate strategy
- Developed a high-level communication plan in the next five years
Business Unit Strategy in Financial Services
Business unit strategy assessment for a leading Vietnamese non-life insurance company
Client’s questions:
- How attractive is Vietnam’s non-life insurance market?
- What are our strengths and weaknesses compared to key competitors?
Our approach:
- Analysed the market drivers and reviewed key segments in terms of estimated market size and projected growth rate in the next 5 years
- Conducted a detailed strategic benchmarking with competitors in terms of industry’s key performance indicators (e.g. gross premium, retention ratio, claim ratio, etc.) as well as key financial indicators
- Conducted a strategic planning workshop with the management to guide and support the strategy development process
Our answers:
- Provided an overview of the Vietnamese non-life insurance industry and the attractiveness of its key segments
- Identified our client’s strategic strengths and strategic gaps along the value chain
- Proposed a set of solutions to improve the client’s competitive position
