Development of the << TARGET MARKETS MAP>>

for the Datwyler tunneling productsP5 TEAM UNI:Elena Banchero AssiettiAndrea Odille BosioGabriele MazzaniGiacomo Piazza

supported by:

TEAM PROF UNI: Eleonora Cattaneo, Carolina Guerini

TEAM BS: Remo Burgener, Thomas Gruber

TEAM CSM: Markus Christen, Alessandro Ranzoni, Annick Somers

PROJECT GOALDevelop a global geo market analysis

for Datwyler Tunneling Division

FINAL OUTPUT

GEO MARKET ANALYSIS

Usage of regional data on territorial units in order to obtain a digital map.

Through the map interpretation the Company can take specific decisions

HOW TO ACHIEVE IT?Using a methodology suitable for different businesses

through criteria adaptations

METHODOLOGY

1. First WTO screening countries2.GDP & Growth Rate Screening3. Key Country Matrix Construction - Market attractiveness - Competitive advantage4.Results interpretation & suggested marketing strategy behaviors

WTO SCREANING

GDP & GDP GROWTH RATE

SCREANING GDPGDP at purchaser’s prices measured by the sum of the gross value added by all resident producers plus any product taxes and minus any subsidies

GDP growth ratePercentage growth rate of GDP at market prices based on constant local currency

KEY COUNTRY MATRIX

WHAT IS THIS?First introduced by the consultancy firm McKinsey for the

General Electric Co, this visual and intuitive instrument helps to understand how the Company should behave in each country

market

WHY HAVE WE CHOSEN IT?It is easy to understand and it gives a bidimensional point of

view

WHY IS IT USEFULL?It allows to understand both the internal and external company

environment

MARKET ATTRACTIVENESS

Vertical axis of the Key Country Matrix . This variable is determined by the market-related factors (external factors).

Parameters customized on tunneling products : 1. Entrance barriers & Government regulations 2. Economic risk 3. Market stability4. Public expenditure in infrastructure 5. Clients presence

How to weigh each variable?Bottom up approach based on the ROI experience

COMPETITIVE ADVANTAGE

Parameters customized on tunneling products: 1. Number of Projects already carried out in the country 2. Existing supplier network 3. Technological Advantage 4. Direct competitors’ presence 5. Number of potential substitutes

How to weigh each variable?Use of key performance indicators and company’s estimation

The horizontal axis, is the Competitive Advantage the Company has/would have in a specific Country. With:

ZONE 1

• Generic risks related to a high number of competitors and high entrance barriers

• If the Company is present it should

remain in the market and lower

fixed costs

• If the Company is not present there

is a high investment need with a

long term return Low HighCOMPETITIVE ADVANTAGE

ZONE 2

• High number of competitors, but the remarkable market attractiveness can lead to success

• If the Company is present and the market is not monopolistic Datwyler should make an effort in order to defeat the competition.

• If the Company is not present, investment is not recommended as incumbent companies already have established customers.

COMPETITIVE ADVANTAGEHighLow

ZONE 3

• High potential both for internal and external environment

• If the Company is present it should

reinforce and implement the

position thanks to low investment

efforts

• If the Company is not present it

should invest and gain from the low

competition; the investment will be

high but returns will be high as wellLow High

COMPETITIVE ADVANTAGE

ZONE 4

• High risk related to external factors such as government or political instability; the low competition could lead the Company to gain a first mover advantage

• If the Company is present it should be careful to invest resources since the environment could be unstable

• If the Company is not present an increase on government regulations can open a door to investment and the low competition pressure can drive to a profit

Low HighCOMPETITIVE ADVANTAGE

Excel Tool

Excel Output

Final suggestion

The tool is useful to obtain a preliminary comparison between options and therefore is most effective when several countries are analysed simultaneously.

Thank for your attention