.:In the commodities sector, industrial investment decisions 
directly determine the growth policy and future profitability of groups. Significant capital intensity, long-term non-redeployable assets, high fixed costs and low differentiated products are just as characteristic, making these choices particularly crucial. Considering these specificities, decisions regarding market entry timing, dimensioning and location of capacities must form part of a sustainable industrial process with regard to expected growth, competitive interactions and investment incentives for other companies. The objective analysis of future industrial configurations and plausible competitor strategies is therefore vital for decision-making.

Our Competitive Strategy unit is dedicated to competitive analysis for corporate management and strategic management of industrial groups. It covers three main areas.

• Investment projects due diligences: competitive position, pre-emption of growth, competitor entry risk limitation, etc.
• Vertical integration strategy: protection of new markets, strategic pricing, distribution control
• Development strategy/exit strategy: entry into a market (identification of acquisition targets), market consolidation (greenfield, brownfield, acquisitions), exit strategy (identification of target purchasers, success conditions)

 

These interventions require a platform of tools and methods designed specifically to meet these challenges: SVATM, the accumulation of 10 years of collaboration between industry and YKems experts. A structured analysis process and quantified analysis tool derived from the games theory for modelling SVATM competitor interactions is currently used for establishing the international or local strategic choices of major industrial groups in various sectors: cement, steel, chemicals, mines, agri-food, etc.

Examples of intervention   

• Organic vs. external growth strategy (increased capacity, acquisitions) for an international construction materials group
• Downstream integration strategy for a leading mining group in the international market
• Finding acquisition targets and assessing synergies for a cement manufacturer in a growing market)
• Import risks and capacity investment strategy for a sugar manufacturer
• Seaborne flow and price line projections for a major company in the international coal market