Solutions sales growth is not as high compared to key competitors despite it being the most profitable. As shown in the market analysis, Solutions' revenue growth is lagging as the market is already growing by 17% compounded in the last 5 years. Further analysis of Solutions client portfolio reveals that revenues from one group of companies (global) comprise around 30% of its current sales. The situation is similar in the past which makes the revenue stream volatile due to high concentration risk. This is shown in the growth of net income over the years. Possible Strategy or Action. Solutions should invest heavily in the development of its business development (marketing and sales) team in order to develop new market which is not vulnerable to global appointments. This new market (most probably the local industries) would be medium to large sized local companies. Penetration of such markets should dilute the concentration risk of the current client portfolio of Solutions. Internal Factor Evaluation (IFE) Strength Ratings and Importance Weight S1. Good Servicing reputation; Weight 15%; Rating - 4 – This is one of the highest in weight. This is a core competency in the service industry most especially for business where after sales service is active and contact with the clients has lasting effect and meaning during after sales. This is a major strength of Solutions as it is reputed to have strong service oriented processes and people. Base on both providers and feedback, Solutions is one of the clients’ broker firms (if not only) who is able to administer the plan effectively and really adds on value in terms of servicing the needs of the clients in collaboration with the providers. Value-added services that are visible to the clients and providers include audit of all documents, materials and agreements from both providers and clients. It also include technical advice on policy provisions, negotiation with the providers for difficult claims and policy terms and conditions. There was even one MNC client of Solutions which was able to convince global to retain a local broker because of Solutions servicing capabilities.
Solutions sales growth is not as high compared to key competitors despite it being the most profitable. As shown in the market analysis, Solutions' revenue growth is lagging as the market is already growing by 17% compounded in the last 5 years. Further analysis of Solutions client portfolio reveals that revenues from one group of companies (global) comprise around 30% of its current sales. The situation is similar in the past which makes the revenue stream volatile due to high concentration risk. This is shown in the growth of net income over the years. Possible Strategy or Action. Solutions should invest heavily in the development of its business development (marketing and sales) team in order to develop new market which is not vulnerable to global appointments. This new market (most probably the local industries) would be medium to large sized local companies. Penetration of such markets should dilute the concentration risk of the current client portfolio of Solutions. Internal Factor Evaluation (IFE) Strength Ratings and Importance Weight S1. Good Servicing reputation; Weight – 15%; Rating - 4 This is one of the highest in weight. This is a core competency in the service industry most especially for business where after sales service is active and contact with the clients has lasting effect and meaning during after sales. This is a major strength of Solutions as it is reputed to have strong service oriented processes and people. Base on both providers and clients’ feedback, Solutions is one of the broker firms (if not only) who is able to administer the plan effectively and really adds on value in terms of servicing the needs of the clients in collaboration with the providers. Value-added services that are visible to the clients and providers include audit of all documents, materials and agreements from both providers and clients. It also include technical advice on policy provisions, negotiation with the providers for difficult claims and policy terms and conditions. There was even one MNC client of Solutions which was able to convince global to retain a local broker because of Solutions servicing capabilities.
strama_annayu_draftv2_20130821.docx