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H I G H B R I D G E 2
Contents
1 Grocery Retail (Europe) 21 Intercontinental Logistics 41 Cleantech
2 Mining (Steel) 22 E-commerce 42 Cyrptocurrency
3 Airlines in Europe 23 E-cigarettes 43 FMCG: Household Products
4 FMCG: Dairy Industry 24 Education 44 Basic Material: Cement
5 Cars Manufacturing (core) 25 Furniture 45 Public Sector: Transportation
6 Telecom for Mobile in USA 26 Commercial Banking 46 Health Insurance
7 Casino 27 Sports Industry 47 Beer
8 Laptop 28 Luxury Goods 48 Tax & Accounting
9 Education USA 29 Livestock 49 Basic Material: Steels
10 Entertainment (Music) 30 Vaccine Industry 50 Car Insurance
11 Solar in Renewable Energy 31 Cloud Computing 51 Insurance
12 Banking and Financial Services USA 32 Solar Energy Asia 52 Grocery Industry
13 IT Industry USA 33 Public Transportation 53 Automotive, Personal
14 Restaurant – Quick Service 34 Video Games 54 Digital Healthcare
15 Retail – USA 35 Private Equity 55 AI, autonomous robots
16 Airline – LATAM 36 Public Healthcare 56 AI Embedded Systems
17 Public Sector 37 Wealth Management 57 Public Aerospace and Defense
18 Agribusiness Industry 38 XR 58 Private Equity
19 FMCG Industry 39 Autonomous Vehicles 59 Europe’s pharmaceutical industry
20 Tobacco Industry 40 Life Insurance 60 Wind Energy
H I G H B R I D G E 3
Contents
61 Vaccine industry
62 Video Games - Consoles
63 Offshore Wind Energy
64 Carbon Capture Utilization & Storage
65 Soft Drinks Industry
66 Airline Industry
67 Healthcare – USA
68 Pharmaceutical industry – EU
69 Supermarkets – USA
70 Cargo Shipping Industry – Asia

H I G H B R I D G E 4
5
Grocery Retail Key trends Revenues Costs
• Click & Collect service ensures great • Purchased goods • Variable:
(Europe) flexibility for customers • Online delivery fees – COGS, Fuel, Packaging, Logistics
• Autonomous supply chain planning • Advertising placement Cost
Overview and predictive analytics • Product shelf placement • Fixed:
• Reducing single-use plastic • Pop-up tents fee – Wages, Rent, Delivery Vehicles,
• The European grocery retail • Home delivery popular but margins • Rent from other spaces Utilities (esp. electricity -
industry is forecasted to be low, ‘milkman model’ being trialed • Additional services (petrol station, freezers, lights, machines),
worth €2.3 trillion by 2022 • Reducing waste via better demand etc.) Machinery maintenance,
predictions and stock management Inventory Management,
• Eastern European markets • Tendency towards domestic Marketing, Administration,
Some seasonality, certain
enjoying the strongest CAGR due products over imported products Insurance
to economic liberalization and produce is only sold when in
(especially with fruit and season
rising household spending. vegetables, meat, etc.)
• The industry is increasingly • Omnichannel customer experience
consumer-oriented, with players • Self-care, plant-based and CBD
needing to be increasingly products growing fastest
responsive to changes in • Online and in-store price parity
preferences. • Investment in fulfillment centers,
delivery fleets
• Consequently, they are heavily
investing in customer data
analysis to predict sudden
changes in demand,. Value chain
• With the wide spectrum of
products, the market is generally Distribution
Suppliers Transport Transport Stores Customers
segmented by income and Centre
demographics.

• However, customer profiles are Bottlenecks

becoming more and more 1. Distribution centers - not being able to distribute due to increased movement restrictions
diverse, and willingness-to-pay 2. Stores - accumulation of certain goods due to fluctuating demand, seasonality, pandemic
(WTP) for goods with an emphasis 3. Stores – real state availability and prices
on health and nutrition is on a 4. Suppliers - Unable to ramp up production for certain goods during to drastic demand increase (sanitizers and perishable foods during
strong upward trend. COVID outbreak)

Authors: Jacob Wang (C1), Lenka Eleková (C1), Avi Kumar (C1) 6
Grocery Retail Competitors Customers Suppliers
Segmentation & Players: Segmentation: Segmentation & Players
(Europe) • Wholesaler: Costco • Family feeders • Niche product supplier
Coronavirus impact • Budget : ALDI, LIDL • On-the-go consumers • Own-label supplier: e.g. ALDI-
• Mid-market: Carrefour; COOP • Natural and Healthy branded products
Opportunities:
• Premium: Reformhaus (DE); • Gourmet focus • Big-brand Supplier: P&G, Unilever
• Retail trip consolidation - number
of transactions has declined while Veritas(SP); • Variety seekers Trends:
average transaction value has • E-commerce: Amazon Marketing channels: • High balance sheet performance
increased, opportunity for Key success factors • Website, Social Media, Brochure, • Autonomous supply chain plans
increased cross-selling
• Costco: membership-based model, Catalogue, TV Ads, Newspaper • Data-driven decision-making
• E-commerce growth due to mobility low-cost efficiencies
restrictions - opportunity for SME
Trends: • Supplier consolidation
businesses (they can avoid the hefty • ALDI/LIDL: hard discounting, • Crisis-triggered panic-buying • Active use of social media for
supermarket cut), increasing choice product purchasing control, low • Increased perishables sales consumer insights
+ new niche products OPEX • Higher spend on digital marketing
• Shift to digital sales channels
• Shift in consumer attitudes towards • Mid-market: product mix and quality • Emphasizing sustainability and
• In-store pop-ups, events and classes
branded products - retailers can valued by customers authenticity in product offering
gain market share by stocking
boosting engagement
Competition intensity in all business • CPG companies turning to DTC sales
private labels that target consumer • Increased interest in hybrid shop-
segments are high, due to the need for channels (e-commerce)
emphasis on nutrition and health and-eat concepts
scale to be profitable
• Home delivery • Higher product personalization to
Challenges: drive brand loyalty
• Supply chain bottlenecks as demand
for sanitary products and
perishables skyrocketed with
COVID, and manufacturers struggled Similar industries Key risks Media
to ramp-up production + logistics
issues • Family-run direct-to-customer • Contaminated products • Consulting firms’ insight reports
• Traditional grocers need to businesses • Reputational risk - product scandals • Industry reports from regulators
restructure their omnichannel • Farmers’ markets • Legal action from in-store accidents • Think tanks and business journals
approach to one that is more • Meal Kits and subscription grocery • Inventory damage from natural
digitally driven, as sales shift to delivery disasters and power outages
online channels
• Similarity: food offering with some
• Increased M&A Activities, the
add-ons
competitive environment in the
future will be altered by market • Difference: freshness & quality,
consolidation and the emergence of accessibility, convenience
new digital rivals.
Authors: Jacob Wang (C1), Lenka Eleková (C1), Avi Kumar (C1) 7
8
Mining (Steel) Key trends Revenues Costs
• Advanced technology & automation have greatly • Commoditized market • Main costs:
changed the mining industry making it more • Revenue = output x selling price – Labor, Research, Machine
efficient of steel maintenance, Transport,
Overview • Recycling used steel products a solution for – Infrastructure & development • Highlights:
depletion of high-grade raw materials – Automobile – Location – Understand cost in
• Average world steel use per – Traditional Manufacturing certain areas
• The social responsibility in the mining industry
capita has steadily increased – Agriculture – Risk due to political unrest
• Companies will need to venture in other mining
from 150 kg in 2001 to 214.5 kg • Prices are determined by market – Ore Quality – Oxide ores are better
areas as low-risk areas become exhausted. This also
in 2017, as the world grew means more investment in better technology and forces because it is easier to extract high
more prosperous. extensive research • Output varies by demand and quality materials.
market price – Mine Type –Underground mines are
• Steel is used in every important • Digital transparency will help mining companies to
more expensive than open pit mines
industry: energy, construction, keep informed their stakeholders. This will become • A higher/more stable outputs at
– Low operating costs allow a mine to
essential when the mining companies start lower price points is the key to
automotive and transportation, have a higher output
digitalizing and automating their operations (⅕ of increase revenue
infrastructure, packaging and companies to invest avg. 15-25% on innovative
machinery. activities)
• By 2050, steel use is projected • Navigation through rising geopolitical risks - A
to increase to be 1.5 times growing popular resistance to globalization and
free trade is altering politics, and trade wars
higher than present levels in
order to meet the needs of our
growing population.
• The housing and construction Value chain
sector is the largest consumer
of steel today, using around
50% of steel produced. • Starting the business:
– Explore the suitable site 🡪 Run a feasibility study
• One of the key trends is raising 🡪 Mine 🡪 Transport 🡪 Process 🡪 Market and Sell
social responsibility, which • Three types of companies:
drives the investors’ decisions – Exploration: explore and prove iron exists
– Development: develop mines on sites
– Production: full-fledged crude steel producer
• Industry Structure:
– Industry is not well vertically integrated in general

Authors: Jacob Wang (C1), Lenka Eleková (C1), Avi Kumar (C1) 9
Mining (Steel) Competitors Customers Suppliers
• Barriers to enter: • Segmentation: the breakdown of • The crisis-triggered disruption of
– High capital requirements customers is made by industries: supply chain would require
creates a deterrent to potential Construction (the largest), Transport producers to have higher level of
Coronavirus impact new entrants (cars, trucks, aviation), Machinery, inventories for emergency
Mining industry generally risks – Government regulations are – Exclusively businesses or preparation
losing an estimated $30 billion to main consideration for supply governments • Types of supplies needed:
$120 billion in EBITDA in 2020 concerns • Marketing channels: – Heavy Machinery
versus 2019 – Substitutes are other precious – PR is paramount to – Raw materials
metals (e.g. titanium) communicating and maintaining – Iron ore
∙ Phase one: price shock—often
• Types of players: Big and small relationships with the local and – Coke
at or even below marginal cost
companies with the big ones owning general public and major
– Limestone
∙ Phase two: demand shock — several mines stakeholders.
end-use sector demand • Key players: Freeport-McMoRan – Private campaigns, charity
declines. Inventory destocking. and Newmont Mining (both based in donations, affairs, traditional
∙ Phase three: new supply– the US), as well as Anglo American media
demand equilibrium, shutting (UK), China Molybdenum • Trends:
down high-cost supply and high • The countries with most mining – Prioritize strategic contracts
grading, resulting in a new activity are China, USA, Russia and – Communicate with stakeholders
supply–demand equilibrium. Australia daily
∙ Phase four: demand recovery – Renegotiate conditions of active
and the next normal, as soon as client contracts
global recovery being led by
the larger economies and Key risks Media
prices rebounding as shortages
begin to appear. • An expected revenue loss of $90 billion to $200 billion in mining industry • Consulting firms’ insight reports
• Major supply chain disruptions in Europe and North America • Industry reports from regulators
• Obtaining license to operate - companies need to transform their business models to • Think tanks and business journals
be transparent about the value they delivering and socio-environmental impact of their
activity
• Higher input costs are affecting the company’s bottom line
• Technology companies might pose a threat as they can replace mining companies.
They have good access to capital and are investing in the innovation and technology
that mining operations need to be more effective

Authors: Jacob Wang (C1), Lenka Eleková (C1), Avi Kumar (C1) 10
11
Airlines in Europe Key trends Revenues Costs
• Political: the European Commission • The four main business models: • Fixed costs: aircraft leasing or
launched an aviation strategy to – Full service depreciation (if leased or if owned),
reduce emissions; increased security – Low-cost maintenance, salaries (management,
Overview measures after terror attacks in aircraft personnel), services (IT, ads
– Charter
Europe; & promos, insurance, commissions);
• Sectors of transportation & – Cargo/freight other fixed costs (financing,
• Economical: the boom in low-cost
logistics industry: (1) aviation, • Airline classes: Economy, business registration fees)
carriers made air travel cheaper and
(2) logistics, (3) rail transport, class, first class
more accessible -> market • Variable costs: materials (aircraft
(4) vehicles and road traffic,
consolidation fuel, passenger food, usage-based
and (5) water transport
• Technological: blockchain tech can maintenance), landing fees/slots
• Growth: Since 2008, Eastern change how passengers are identified
European countries lead growth and how baggage is tracked; biometric
in Europe’s aviation sector with is used for identity verification; virtual
an increase of 103% (at CAGR reality is shaping up the sales process;
6.6%,); Western Europe shows • Environmental: R&D investments to
conservative growth of 33.6% at make aircrafts more efficient and
(CAGR of 3%) environmentally-friendly -> reduce
overall emissions
• Consolidation in the market will • Legal: special laws for air traffic and
make the big players even passenger safety (strong passenger
bigger as the market share of rights)
the “big five” increased to 50%
Value chain

Pre-flight Flight Post-flight Marketing & sales Service

• Route selection • Ticket operations • Baggage system • Advertising • Lost-baggage

• Flight scheduling • Gate operations • Flight connections • Promotions service
• Facility planning • On-board service • Car rental, hotel • Alliance programs • Complaint follow-
• Baggage handling • reservations • Travel agent up
program

Authors: Liaba Abou Zaki (C1), Lisa Hellweger (C1), Maro Okiti (C1) 12
Airlines in Europe Competitors Customers Suppliers
• Key players* have 50% of market • Segmentation: • Although airlines compete highly
share in Europe – Non-business travelers with each other, there is not as
• Ryanair is leading with a market ▪ Holidays/frequent/urgent/bu much competition among aircraft
Coronavirus impact suppliers
share of 12% dget conscious -> private
• The “big five” (#passengers in 2019): individual – Airbus and Boeing are the
Issue
– Ryanair* (152 MM) – Business travelers world’s major large passenger
• Cancellations due to travel ▪ Frequent/urgent (for aircraft manufacturers - duopoly
– Lufthansa* (145 MM)
restrictions resulted in business travelers the airline
– IAG (British Airways, Iberia, etc.
major losses for European customers are the companies
118 MM)
airlines > many insolvencies and not the private
– Air France-KLM* individual)
• The crisis is fundamentally – easyJet
changing the need for flying
(business and private trips) Similar industries Key risks Media
Response • Hospitality: Pricing model–different • Volatility in the geopolitical and • Focus on who enters the market and
room options, price is also affected economic environment (e.g. political who leaves it
• Significant reduction of by the booking time tensions) • Ethical discussion of increasing
routes offered; ticket prices • Rail transport: different seat • Managing the supply chain (in a vast flying demand due to environmental
increase; major airlines are classes (economy, business), prices network of suppliers) consequences vs. lifestyle (shown on
receiving governmental change based on high-/off-season • Competition in domestic and social media)
support (Lufthansa, KLM, international markets
etc.) • Compliance with wide range of
regulations and restrictions

Authors: Liaba Abou Zaki (C1), Lisa Hellweger (C1), Maro Okiti (C1) 13
14
FMCG: Dairy Key trends Revenues Costs
• Economical: Milk is not a lucrative • Revenue Streams: Heterogenous • Fixed Costs: salaries (hired labor),
Industry product, with small margins. Dairy sources (replacement heifers, cull rental, capital equipment &
industry pivoting to other finished goods cows, crop sales, bottling milk, structures, fuel and oil, veterinary
Overview • Technological: Heterogeneous conversion into cheese, yogurt, expenses, utilities, building leases ,
production through the farming of kefir, whey products, milk products interests and depreciation
• Sectors by size: Milk (whole
fat, low fat, UHT, lactose- different species, with some of those • Alternative Streams: Breeding • Variable Costs: energy, raw
segments growing and cow on the decline cattle for farmers, selling hay materials animal feed
free, organic), cheeses and
fermented products, • Environmental
traditional by-products (eg. – Vegan culture with anti-dairy
sentiments.
whey products), ultra-
processed (eg. as an – Demand for cleaner packaging
ingredient in other finished • Market
goods, flavored puddings) – Organic preferences
– Lactose-free preferences
• Small and Medium players • Legal
make up 90% of the global – Risk of poisoning through storage
market and drive the growth – Protectionist policies
outlook for the industry – Price ceilings set by the government

• Growth Outlook: global milk

production is projected to
increase by 177 million tones
by 2025, at an average Value chain
growth rate of 1.8% per
annum in the next 10 years.
Over the same period, per Inbound logistics Operations Outbound logistics Marketing & sales Service
capita consumption of dairy
products is projected to
increase by ~1% in developed • Cold chain raw milk • Transportation to • Transport to • Pricing (Largely • Distribution to
countries and ~2% in production dairy processor warehouses & governmentally- retailers (grocery
developing economies (homogenised, terminals regulated) stores, kiosks),
pasteurized) whole sale)

Authors: Liaba Abou Zaki (C1), Lisa Hellweger (C1), Maro Okiti (C1) 15
FMCG: Dairy Competitors Customers Suppliers
• Plant-based alternative/ faux-dairy • Indian consumers demand ~double • India and the United States have the
Industry products the volume of dairy as the world biggest share of dairy production
• The global dairy alternatives market • Segmentation: Family / lay, fitness- worldwide
Coronavirus impact is expected to grow at ~8% CAGR in driven, health-driven, • Supply is typically local
Issue 10 years, driven by Asia Pacific, the environmentally aware, lactose- • Supply depends on a large number of
Americas, and Western Europe intolerant small players
∙ Supplier disruption due to 1.
bottlenecks in logistics due
to lockdowns 2. worker
infection risk in production
facilities
∙ Rising dairy surpluses in
Similar industries Key risks Media
export regions • The meat, poultry, and egg • Managing the supply chain when • Negative narrative in the media
industries all share the challenge of faced with perishable, heat- around conventional (animal-based)
∙ Move away from wholesale quick perishability and demanding sensitive, expensive-to-store dairy, criticizing;
to retail grocery customer storage conditions, as well as great inventory – The nutritional value of dairy
(gap looking for drivers) versatility in usage/ consumption • Competition from plant-based milks products, particularly milk
channels and faux-dairy products – The ethics of both producing
Response
• Difference: customer profiles dairy through factory farming,
∙ Leveraging demand and of consuming it at all
projection capabilities of
partners

Authors: Liaba Abou Zaki (C1), Lisa Hellweger (C1), Maro Okiti (C1) 16
17
Cars Manufacturing Key trends4 Revenues Costs6
• “…number of physical retail outlets Projected auto sales revenue • Capital intensive industry - CAPEX
(core) will be reduced by 30–50% by 2025.” worldwide between 2020 and 2030 heavy
(Revenue in billion U.S. Dollars)5
Overview • 3 out of 4 executives (77 %) believe • Main expenditures are connected
that making the most efficient use of 3.800 with components (up to 40% in the
3.027
Global annual car sales(millions)1 resources will be one of the biggest 2.755 structure of cumulative
drivers in the industry. expenditures for manufacturing and
110
95 merchandising), with labor force (up
• 52 % of respondents rank fuel cell
to 20%), marketing (up to 20%);
electric vehicles as the most important 2020 2025 2030
2019 2026 technological leadership (R&D
automotive key trend up to 2025.
spending is up to 8% of sales);
Sales by segment2 • “Executives see BMW as the #1 e- Automotive industry product quality and brand
mobility leader.” has seasonal trends: reputation
SUV 36%
• “Infrastructure first, e-mobility • Peak in demand in Spring and Fall
Compact 17%
Subcompact 13%
second: Of the executives surveyed, 55 • Lowest sales in January and
Midsize 8%
% still believe that pure battery February
MPV 7% electric vehicles will fail due to the
Others 19% challenge of setting up the required
infrastructure.”
Sub
SUV Compact
compact
Value chain
Midsize MPV

Parts
Global annual car sales (millions)3 Raw Material Vehicle Transportation Marketing &
R&D & Design procurement/a
supply assembly to Dealers Service
ssembly
Emerging 16
Markets 33
6 Costs Low to medium Low High Low Low Medium to high
China
34
Mature 43 1. https://www.cargroup.org/wp-content/uploads/2019/02/Wall.pdf
markets 43 2. https://www.jato.com/global-car-market-remains-stable-during-2018-as-continuous-demand-for-suvs-offsets-decline-in-sales-of-compact-cars-and-mpvs/
3. https://www.cargroup.org/wp-content/uploads/2019/02/Wall.pdf
2006 2026 4. https://assets.kpmg/content/dam/kpmg/tr/pdf/2018/03/global-automotive-executive-survey-2018.pdf
5. https://www.statista.com/statistics/1103008/global-auto-sales-revenue/
Mature markets: US, Canada, 6. (Hertenstein, Williamson, 2018; OICA, 2017)
Japan, S Korea, Australia, New
Zealand, Western Europe Authors: Mohamad Fleifel (C1), Vadim Khrukov (C1), Vy Pham (C1) 18
Cars Manufacturing Threats to the industry Customers Suppliers
• Public transportation development • Two type of customer: Commercial • Raw Material Suppliers:
(core) • Rise of other reliable modes of buyers – Semi finished products: Steel,
transportation like car pooling, Uber – Business clients (rental leather, glass…
and rental… companies, leasing or other firms – Parts supplier: lamps/
• Eco-friendly solutions, like street buying in bulk for industrial use) accessories/ electric cables
scooter, and small EV • Marketing channels: – Outsourcing manufacturing some
– Ads, Social Media, Test drive parts
– Bid participation, site visit • Key suppliers: urgent raw materials
• Order size coming from other countries/ far
geographies
– B2C: 1
• Order size: Mainly in bulks,
– B2B: 1-100+ advanced orders
• Distribution Channels:
– Showroom/ online
– Factory directly on demand

Similar industries Key risks

• Airplanes manufacturing is similar in • Huge change in consumer demand/behavior
terms of outsourcing products from • New restrictions/taxes on imported parts from different countries/continents
different part of the world
• Pandemic that might limit supply chain globally & reliance on transportation
• Differences in order size and
delivery time • New regulations from the government on manufacturing cars, e.g. CO2 emissions

Authors: Mohamad Fleifel (C1), Vadim Khrukov (C1), Vy Pham (C1) 19

20
Telecom for
Mobile in USA
Overview
• The telecommunications Key trends Revenues Costs
industry consists of • Deregulation and innovation • Revenue streams: Mobile telephony, • A capital expenditure intensive
companies that transmit Internet access services, Reselling industry:
• Mobile over fixed line, internet over
data in words, voice, audio, services, Others
voice – CAPEX include
or video across the nation.
• Unlimited data plans • ARPU= total revenue/total users or ▪ Main Hardware
units/time frame
• Carriers are companies that • 5G connectivity offers opportunities for ▪ Spare Parts
provide communication growth and also risk of cannibalism • ARPPU=total subscription price/total
accounts/time frame ▪ Software Licenses
services to mobile users. • Mobile virtual network operators ▪ Building to host the device
(MVNO)
• $2,84 bn in value ▪ Cables
• Data privacy and security: FCC’s
regulations regarding Encryption, Data – OPEX include
• 0.4% CAGR 2015-2020 Maintenance
Retention, Government ▪
Interception/Retention, and Data ▪ Power Consumption
• 3% growth in 2020
Security Obligations
▪ Overheads

Value chain

Product and Equipment

Infrastructure Provider Service Provider Business and Household
Manufacturer

Regulators
• Bottleneck in equipment and infrastructure: increasing demand requires increasing bandwidth
• Bottleneck in service: network deployment, congestion, and failure management

Authors: Mohamad Fleifel (C1), Vadim Khrukov (C1), Vy Pham (C1) 21

Telecom for Competitors Customers Suppliers
• Concentrated market with high • Segmentation: Residential Customers, • Segmentation:
Mobile in USA barrier to entry Business, Other Carriers (wholesale) – Product and equipment
• Competition to attract and retain • Marketing channels: call centers, brick- manufacturer
Coronavirus impact customers and-mortar stores, web sites, social – Infrastructure provider
• Mobile virtual network operators network • Traits:
• Accelerate the current
(MVNOs) or low-cost operators can • Traits: – Intense supplier competition and
trends in telco
be either customers or competitors – When economic times are tough, high barrier to enter due to high
• Service providers shift that affect Players’ B2B and B2C customers tend to disconnect R&D and facilities investments
inside their core strategies landlines and rely more on wireless – Established suppliers enjoy long-
capabilities: direct their • Key success factors: user search and broadband communications. term strategic partnership with
capex toward more robust, intent, 5G offerings, MVNO strategy Also, consumers will gravitate to the large service providers
permanent home office most economical voice and Internet
– High technology capabilities
infrastructure and network Share of Subscription plans. This pressures telco budgets,
which encourage supplier
resulting in scaled-down or delayed
connectivity; add more AT&T bargaining power over telco and
1% network expansion.
capacity to meet more than niche capability for new entrants
20% – Growing demand for Internet
40% increase in bandwidth Verizon
bandwidth driven by video
demand on their networks 34,80%
downloading and conferencing
as millions of employees T-Mobile
and students became home
Sprint
bound 20%

Others
24,20%

Similar industries Key risks Media

• Oil and gas industry, in terms of • Data privacy and security • Consulting firms’ reports
supply chain: centralized resource • Impact of OTT services on telecoms' • Industry reports, FCC report
extraction, process and then voice and messaging revenue • Other business journals
downstream distribution to various • MVNOs’ impact on share of wireless
locations for use or resell; and
oligopoly market structure

Authors: Mohamad Fleifel (C1), Vadim Khrukov (C1), Vy Pham (C1) 22

23
Casino Key trends Revenues Costs
• Cryptocurrencies will continue to • Gaming is declining/Rooms & food • CAPEX heavy (building, decoration,
dominate the gambling industry with growing machine)
many online platforms accepting the – FC
Overview crypto. ▪ Casino Staff & management
• Access even in Restricted Areas of 10% ▪ IT system(preventing fraud )
• Major companies include US-
Gaming ▪ Safety guards
based casino operators Las Vegas
Sands, MGM Resorts, Wynn • Land based casinos are feeling the burn – VC
18%
Resorts. Galaxy Entertainment from their online versions and are ▪ Food & drink
facing a rapid decline 50% ▪ Hotels staff & management
(Hong Kong), SJM Holdings (Hong
Kong), Tabcorp (Australia), • Push for Virtual Reality based casinos ▪ Rooms supplies
International Gaming Technology • As casinos attempt to attract the ▪ Entertainment fee
22%
(UK), and William Hill (UK) are younger generation, new slot machines
international. with features found in their many
video games and gaming consoles will
• The global gambling industry’s Gaming: Slot VS Tables: 15% VS 3% π
be found.
gross yield was more than $435 • Placing bets via a smartwatch is now a Food & Beverage
billion in 2017 and is expected to very really thing. Rooms
hit $500 billion by 2022, growing
at a CAGR of approximately 4% Other (entertainment/rent)
during 2017-2021. Major casino
gaming markets outside the US Value chain
include Macau, Singapore,
Australia, and South Korea. • Natural bottleneck: land, labor, transportation, water and other infrastructures
Revenue is expected to grow • Institutional bottleneck: legal and regulation structure of the local government
steadily as casinos continue to
expand in new markets, VIP
specifically in Asia. Entertainment
Labor Union
Providers
Other supplier Casino Premium Mass
3% 3%
Canada Retailers Transportations
US Mass
40% Europe, Middle East
44% and Africa Government
Asia Pacific
10%
Latin America

Authors: Morris Chen (C1), Vincent Xu (C1), Yan Christiaens (C1) 24

Casino Key risks Customers Suppliers
• Shift towards digital consumption • Segmentation • Suppliers:
(mobile and online gaming) could – VIP Players – Casino workers (and casinos), as
adversely affect the market for well as vendors who provide
Coronavirus impact interactive entertainment. – Table players – Premium Mass
entertainment, accommodation,
• Cybersecurity risks from criminals – Slot players(most profitable) - transportation, and retail
The general outlook of the industry Mass
is varied, and uncertainty is likely targeting virtual gaming operations services.
and casino payment systems. • Marketing channels • Trends:
to persist until the duration and
overall impact of COVID-19 can be • Evolving regulatory landscape with – Partner travel agency – Focusing on customized services
determined. However, there are introduction of anti-money – Online marketing and expanding its product
key trends in the space that laundering rules, increasing scrutiny, offering to include non-gaming
– Brokers
demand attention: tighter policies and increasing tax facilities and activities
rates (more costs.) • Loyalty programs is important in
• U.S. gaming industry has been casino
effectively shut down, with all • Weak global economic conditions
may affect the disposable income – Partnership
465 commercial casinos now
closed and willingness to purchase products – Invitation to event
(reduce consumer spending.)
– Online casino gaming is – Complement (food, room)
seeing growth, but – Highlight charity
represents a very small
percentage of revenue for
most U.S. gaming companies
• Navigating an environment with
many uncertainties, including:
– Length of closure period Similar industries – Indirect
competitors Competitors Source of information
– Time to reopen and ramp up
once reopened • Entertainment resort • Casino operators use technology to • KPMG and PwC: Industry reports
• Online gambling differentiate themselves from their
– Impact of COVID-19 on the competitors and succeed in this
economy and consumer • Betting pools(sport lottery) highly competitive industry.
behavior (short/long term)
– Federal government support
in the form of loans or loan
guarantees

Authors: Morris Chen (C1), Vincent Xu (C1), Yan Christiaens (C1) 25

26
Laptop Key trends Revenues Costs
• Government policies (import duties) • Revenues mostly come from product • VC: production costs (wages,
affects the growth of laptop sales sales manufacturing, R&D, parts and
• Environmental regulations constrain – Product sales (#laptops * average components, development,
the supply chains and increase costs. ( price per laptops) packaging, logistics, energy)
Overview due to inefficient resource use, – Royalties (% royalty (2-10%) * Net • FC: capital costs (facilities,
biodiversity risk,...) sales) machinery), overhead, marketing &
• The global laptop market sales
• As a matured industry, the price – Licensing (#licenses * average
size was valued at USD downtrend in the long term, indicating • CAPEX heavy
price per license)
101.67 billion in 2017. It is aggressive pricing will bring more • Breakdown: Profit(4%), Wages
estimated to expand at a consolidation in the market to reduce (20.3%), Purchases (69.7%),
CAGR of 0.4% during the development costs. Overhead (6.1%)
forecast period. • Technological advances over the last
year (Moore’s law= capacity of
• The industry is considered as processor doubles every 2 years,
an oligopoly market, as it is though the cost of computers is halved)
dominated by 3 main Original has increased the laptop market share
Equipment Manufacturers : in the overall PC reduce cost and
Lenovo, HP and Dell. change the industry dynamic.

• The laptop market has

entered the decline phase of
its life cycle, primarily due
to increasingly heavy Value chain
competition from tablet
computers and smartphones
in recent years. As a result, 2nd suppliers 1st suppliers Vendors Buyers
laptop sales volumes have
become stagnant over the
• Metal supplier • Chips, pcb (semi) • Laptop • Business
past three years.
• Plastic supplier • Plastic component • Computers • Consumers
• Software developer • Software publishers • Government

Authors: Morris Chen (C1), Vincent Xu (C1), Yan Christiaens (C1) 27

Laptop Competitors Customers Suppliers – Business model
• Oligopoly market (Top 3= 65% mkt • By end use: Business (45%), Personal • Vendors capitalizing on service,
share) (40%), Game (15%) support, and brand image.
• Key factors: efficient supply chain, • By key buyers: Business, • Original Design Manufacturers
Coronavirus impact service and branding Consumers, Government agencies, (ODMs) design new models of
• Barrier to enter: high capital investment schools and universities laptops, and the brands choose the
Problem: Components supply models to be included in their lineup
• Top CBC:
shortage and production • Similarly oligopoly market (low
– Reliability, Range, Features,
constraints (factories closed), Support, Pricing bargain)
reduced notebook computer
20% – Suppliers are increasingly
shipments, short-term 25% advertising their laptops through
accelerated demand (home websites that allow buyers to
office), significant downturn in compare specifications between 19%
demand in the future (customer similar models from other 26%
7%
confidence goes down and manufacturers.
unemployment) 10%
7%
Solution: Rearranging its
supply chain and using global 24% 10%
footprint of 30+ manufacturing 17% 21%
sites to adjust capacity and 14%
rebalance production. (Lenovo)
Lenovo Apple
Compa Wistro
HP Acer l n
Quanta Invent
Dell Other ec
LCFC Other

Similar industries Key risks

• High degree of competition from: • Cyber-security risk: pre-loaded software not compliant, could mean easy access for
desktop computers, tablet hackers
computers and smartphones all • Supply chain: shut down or delayed operation, impacting the delivery and procurement
providing similar functionality to • Smart factory cyber-attack: with increasing automation in the sector, factories can
laptops face cyber attacks
• Increasing threat from green regulation and rare metal shortage

Authors: Morris Chen (C1), Vincent Xu (C1), Yan Christiaens (C1) 28

29
Education USA Key trends Revenues Costs
• Higher Ed: demographic cliff – high Typical higher ed structure* Typical higher ed structure*
(higher ed and school graduates peak at 2026 and
K-12) will decline from then; international
students declining since 2016, COVID
Debt/financing…

accelerates the trend; competition Investment income Others Scholarships

Overview for funding more severe and 5% 2% 7%

concentrated to top schools

Delivering quality education for • K-12: wider gap between ethnic
CAPEX
4%
students spanning from groups and income imbalance; Grants&Contracts
kindergarten to company changing traditional classroom 21%
Salary &
employees through public / education and assessment Tuition & Supplies
Wages
Fees &
private institutions using digital 40% Services 46%
and physical delivery methods 23%
Endowments
Higher ed total size 1,3 trillion, 3%
projected to double by 2026 Fringes
Sales & Services 16%
$55 Billion (8% of cost to run 15%
the nations public schools) Appropriations
spent on K-12 education, 14%
remaining portion funded by
local, state.
Value chain
Typical bottlenecks: Funding disparity between low income vs high income states for public institutions

Education material suppliers

Sporting goods Wholesale Public/Private Institutions Students

Commercial leasing

Source: Purdue University, FY21

Operating Budget Authors: Yikun Chen (C2), Takayuki Miyauchi (C2) 30
Education USA Competitors Customers Suppliers – Business model
• Traditionally, there are 4 kinds of • Higher Ed: domestic students vs • Higher Ed: Teachers are the most
(higher ed and Higher Ed institutions: university, international students important suppliers, as often
K-12) community college, liberal arts • K-12: Segmentation by age - times they provide material as
college, for-profit college students for kindergarten, well. How to attract teachers?
• However Massive for-credit and free- elementary school, junior high Compensation, research
Coronavirus impact of-charge online education services and senior high; segmentation by possibilities, tenure, etc.
are interrupting the competition family income (could be useful • K-12: school supplies, lunch,
Higher Ed: number of
(Udemy, Coursera etc.). College during case interview!), urban vs teachers, etc. Schools usually
international students drop,
enrollment rate has been declining rural have long term contract with
given travel restrictions, visa
every year! • What do students value: quality suppliers
policies and online education.
International student • K-12: Competition between public of education, • Moving to online education: IT
enrollment is already declining and private school. Since most interaction/networking, brand, supplies, IT support staff
over the past few years. students attend schooling in their facility, activities/experience
own school district, there is limited
K-12: public schools needing to competition.
switch seamlessly to hybrid
learning, however this is
difficult for schools with low Similar industries Key risks Media
funding. Remediation of lost
• Coaching Industry – Labor • Political tension domestic (BLM) • Government reports, Education
learning, disproportionate
intensive, human capital is their • Political tension international journals
impact on low income, black,
main asset (Visa for students)
Hispanic students
• Corporations moving away from
college credentials
• Integration of technology into
education system

Source: McKinsey, Reimagining a

more equitable and resilient K-12
education system Authors: Yikun Chen (C2), Takayuki Miyauchi (C2) 31
32
Entertainment Key trends Revenues Costs
• Moving towards more digital and AI Streaming platform* Streaming platform*
(Music) driven, live performance and
physical are shrinking Significant
Overview increase in suppliers of music Ad-supported service
G&A
9%
content (artists, songwriters) R&D 5%
Three core music industries: • Production quality reduced due to 9%
the recorded music industry— low BTE
focused on recording and Sales &
distribution of music to 87% OF MUSIC OFFERINGS ARE Marketing Payout
consumers; the music licensing DIGITAL 12% to
industry—primarily licensing record
Physical Premium label
compositions and arrangements 13% service… 49%
to businesses; and live music—
COGS
focused on producing and 25%
promoting live entertainment
Global market over $50b, with Digital
87%
50% live music and 50%
recorded music

Value chain
Music creation Middleman Consumers facing

Singers labels Streaming platforms

Songwriters Distributors Media (TV/Radio)

Producers Managers Retail stores

Source: Spotify Authors: Yikun Chen (C2), Takayuki Miyauchi (C2) 33

Entertainment Competitors Customers Suppliers – Business model
• The current production market is in • B2B customers: restaurants, bars, • Instrument
(Music) control of 3 big players: events, movie industry • Individual artists can be seen as
– Warner Music Group — 25.1% • B2C customers: can be segmented in suppliers for music platforms
Coronavirus impact – Universal Music Group — 24.3% demographic, genre, or geography. • Music studios
– Sony Corporation — 22.1% Customers are quite segmented, • Event venues
Live music hit hard by COVID,
therefore most big companies are
accelerating underlying trend – Other — 28.5% • Music production is high on CAPEX
serving the entire market, instead of
of record music growth. In 2014 • Streaming market: YouTube, Spotify, while music performance is mostly
choosing a niche segment to play in.
record music was 9% of total Apple Music, SoundCloud, Audiomack OPEX
market, 2020 is 47%. • Music streaming platform costs:
website development, licensing
Artists delaying release of new music from producers, search and
album due to inability to recommendation algorithm (R&D)
promote using live tours.
Classical music industry, which
relies much more on live music,
has been disproportionally
impacted by COVID. This Similar industries Key risks Media
accelerates the trend of its • Publishing – similar trend towards • Terrorism • Social media
shrinkage. digital and subscription model, • Pandemic • Blog articles
difference in production speed • Government regulations on licensing
• Gaming – similar production and
marketing model

Authors: Yikun Chen (C2), Takayuki Miyauchi (C2) 34

35
Solar in Key trends (4,5) Revenues Costs
• Growing demand for renewable • Solar energy companies make money • High upfront costs (CAPEX heavy)
Renewable Energy clean electricity coupled with from offering solar products and • Photovoltaic is major component
government policy tax rebates and services and through investors(sur- • Cost has come down rapidly in
Overview incentives to install solar is plus ROI) and tax credits. (6) recent years.
expected to drive the market. • Vertically integrated solar
Solar energy is the conversion 2018 commercial PV system cost
• Solar companies that are investing in companies often have the PV benchmark
of sunlight into usable energy technological innovations and module segment (i.e., upstream:
forms, using technologies such sustainable infrastructure will design, manufacture and sell solar $1.83
as photovoltaics (PV), solar facilitate market growth in the modules) and the system segment Other soft costs

heating & cooling, coming years. (i.e., downstream). (7)

Soft costs - Install labor
Hardware
concentrating solar power, and • Incorporating other technologies like Inverter
others. (1,2) energy storage or information Ancillary products PV module

technology will also be essential in Other soft costs include: permitting,

Sub-sectors include utility-scale • Battery storage can be •
the future. inspection, and interconnection
solar and distributed energy. deployed both on the grid and at an
• Some players focus on vertical (PII); land acquisition; sales tax; and
Main products are solar power individual consumer’s home or
integration. Some others aim to engineering, overhead, and net
generation and storage. (3) business. Prices vary by application,
make owning solar panels more profit.
but have come down more than 75%
The global solar PV panels accessible for homeowners. • Hardware refers to balance of
since 2010, disrupting the power
market size was valued at industry. (8) system (BOS) (structural and
$115.2 billion in 2019 and is electrical components)
projected to grow at a CAGR of
4.3% from 2020 to 2027. (4) Value chain
Cells & Wholesale Project Design eng. Operations &
Polysilicon Ingots & wafers
modules distribution development construction maintenance

Upstream (products/modules) Downstream (services/systems)

Globalized market, competitive, strong presence of Fragmented, Largely fragmented, mostly local Fragmented,
Chinese players global market market mostly local mkt

Largest bottleneck is distribution/storage. Solar is an intermittent energy source, and therefore, storage for night-time and
cloudy days is key.

Authors: Emma Yu (C2), Danielle Henriquez (C2) 36

Solar in Competitors (2,3) Customers (4,5) Suppliers (2,6)
• Competition in solar markets globally • Residential (3 - 10 kW), Commercial • For upstream (i.e., solar modules):
Renewable Energy and across the value chain is intense. (10 Kw – 2 MW) – equipment suppliers (stringer,
• The solar PV module market continues • Utility-scale (>2 MW) layup station, laminator, solar
Coronavirus impact (1) to be dominated by Asian companies: simulator, etc.)
nine out of top twelve companies are US 2017 PV Installation in MW – raw materials suppliers (glass,
COVID-19 (coronavirus) should
based in China. semiconductor materials, photo
cause minimal disruption in the
– Within the solar energy market: resist, frames, packing
industry as it operates on long- 2227 Residential PV
– High efficiency solar cells components, solar connectors,
term contracts. Revenue etc.)
growth expected to continue. – Bifacial PV modules Non-residential
– With larger electric power industry 6237 2147 PV
– Downstream services have
Supply chains from China might (wind, hydroelectric, biomass, tidal Utility PV suppliers including PV modules
be distrupted (Chinese solar energy) (from upstream), inverters,
panels are key input for other structural and electrical
components
industry). • Customers include:
– Utilities,
Installers are offering virtual
– Independent power producers,
assessment.
– Commercial (data centers for
Microsoft, Facebook, Apple) and
industrial companies,
– Other system owners (e.g., investors)

Similar industries Key risks (2) Media

• Wind, Oil & Gas from supply chain • Intense competition; Greentech Media
perspective; • Global PV module supply exceeds Solar Energy Industries Association
• Geothermal from business model demand; Solar Power World
perspective. • Susceptible to changes in PV Magazine
government subsidies, tax Solar Magazine
incentives, and public policies (such
as tariffs or other trade remedies)
• Problems with product quality or
performance;
• Failure to protect IP rights

Authors: Emma Yu (C2), Danielle Henriquez (C2) 37

38
Banking and Key trends Revenues Costs
• Technological: Fintech is rapidly • Banking • Banking:
Financial Services transforming the sector. – Interest income (Interest rate – Interest expense
USA • Driven by: Social: growth of gig
worker economy; Economic: growing
spread) (5) – Employee compensation and
– Fees income charged for benefits
influence of big tech companies. products and services that – Information technology
Political/legal: climate change and include wealth management – Legal fees & consulting services,
Overview other so-called ‘ESG’ factors are advice, checking account fees,
– Directors' fees
becoming a permanent feature in the overdraft fees, ATM fees,
Financial services describes the financial services industry. Currently interest and fees on credit – Expenses associated with
various offerings within the 26% of US-managed assets meet cards. (6) buildings and other fixed assets
finance industry, including sustainability criteria, but this will – Investing their cash in short-term
money management and digital certainly grow (especially with a securities like U.S. Treasuries
banking technology (1). future Biden administration).
• A highly regulated market (KYC).
Financial Services in the United
• In retail banking, online lending
States are the largest and most
platforms, mobile banking,
liquid in the world. In 2018, contactless payments are on the rise.
finance and insurance
represented 7.4% (or $1.5
trillion) of U.S. GDP (2). US
equity markets represent 39.4%
Value chain (7)
of the $95.0 trillion in global Marketing Sales Product Transaction
equity market cap, and 38.9%
of $105.9 trillion fixed income Advertising Multichannel Funding Investment Services Payment
Branding management Deposits Credits Account mgmt. Trading
securities outstanding globally
Sales support Acquisition Securitization Securities Asset management Clearing & settlement
(3). In 2019, the estimated
Offering Credits Financial products Insurance/IPO Custody
revenue was $2.07 trillion (4).
Corporate M&A
Sub-sectors include: banking, investments Advisory services
asset management, insurance, Other assets Other services
private equity and venture Technological development
capital. Human resources
Infrastructure
Risk management
Authors: Emma Yu (C2), Danielle Henriquez (C2) 39
Banking and Competitors Customers (5) Suppliers (6)
• Within the banking and financial • Normal segmentation: by location, • Depositors who supply the primary
Financial Services services (2) gender, age, income, education, resource of capital (individual
USA spending habits and capacity, web-
browsing habits. Marketing is done
depositors, major corporate
customers, etc.)
through mailing ads, browser push • Talents (the resource of labor)
Coronavirus impact (1) notification, e-mail, etc. • Other suppliers (IT, software,
Increased demand for banking • Predictive or intelligent cybersecurity, etc.)
services: customers are likely segmentation using AI-based
to start seeking financial relief, algorithms and customers’ buying
and federal bank regulators in propensity: excellent leads,
the U.S. are encouraging banks mediocre leads, and bad leads. This
to help them. AI approach allows personalized
marketing campaigns.
Banks need to have a plan in • Neobanks (i.e., online-only financial
place to protect employees and institutions that do not have physical
customers from Covid health branches) and fintechs pose a constant
risk. threat of disruption to traditional
banking business. (3)
Demand for contactless
• Apple Pay, Samsung Pay, Alibaba,
payments increases.
Google, Amazon Cash. Nonreciprocal
Bank branches will be replaced partnership between banks and tech
by online service. giants such as Amazon, Facebook due to
banks’ lack of existing tech systems).
(4)

Similar industries Key risks (7) Media

• Legal services from supply chain • Legal risks/regulatory divergence • Business insider (Finance Insider
perspective • Geopolitical instability Intelligence)
• Possible economy downturn • The Economist
• Fintech disruption • American Banker
• Third-party relationships with
external technology vendors,
suppliers, or service providers

Authors: Emma Yu (C2), Danielle Henriquez (C2) 40

41
IT Industry USA Key trends2 Revenues Costs
• Rapid adoption and commercialization of • Major revenue drivers in the industry • Majority of the cost of Tech firms
digitalized technologies in non IT come from: Cloud Advertising, SaaS, goes to:
industries inspired by productivity gains – PaaS, IaaS, CaaS and marketplace – CAPEX: Hardware, Software &
Overview1 90% of maturing companies expect digital transactions Licenses
disruption and ~44% are adequately • LTV = Average Contract Value / – OPEX
The IT industry in the US is the preparing for it and this trend is projected Churn Rate ▪ Research & Development
largest tech market in the to increase • The true value of a Tech firm is the ▪ Marketing
world, estimated to represent • Cloud based technologies disrupting value revenue potential it can generate: ▪ Other Overhead costs
33% of the global IT industry chain. Global Cloud workload: Private and valuing the contracted revenue in • Burn rate = Operating expenses –
(~$5trillion in 2021) reaching Public index is to grow by CAGR of 23% the pipeline revenue
~1.6 trillion. The industry and 73% respectively by 2021
Industry Segmentation1
accounts for a significant • Emergence of new job opportunities –
portion of the economic service providing industries is expected to
activity exceeding retail, account for 11.5millon newly created jobs 21% 20% Software
construction and transportation in 2026. IT to accounts for ~15.4%
industry when measured as a % • The increasing need for a digitalize 13% 18%
economy driven by non-physical products Device+i
of GDP
(service delivery, software and nfastruct
29%
computing) is expected to drive US ure
competitive advantage

Value chain
Product and Implementatio
Research and Infrastructure Service Businesses and
Equipment n and
Development Provider Provider Households
Provider Integration

• Bottleneck to secure capital to pursue and continue R&D

• Bottleneck in equipment and infrastructure: increasing demand requires increasing bandwidth
• Bottleneck in securing & identifying quality products from suppliers
• Service bottleneck: Network deployment, congestion and management failure
• Project Bottleneck: Inefficiencies from developers or major stakeholders leading to stoppage or shifting of project work flow
1 https://www.comptia.org/content/research/it-industry-trends-analysis
2 https://www.brookings.edu/research/trends-in-the-information-technology-sector/
Joshua Olabamiji (C2) 42
IT Industry USA Competitors Customers
• The industry experiences an intense competition • Segmentation: Business, Consumer and Government (state,
• The key success factor is continuously developing products and federal and government agencies)
services that suits consumer needs and desire – helping them • Marketing Channels:
Coronavirus impact being more efficient – Social Media, Tech Newspapers, Ads
Companies are now upgrading • All the key players offer their services abroad this further – Product Demo and Testing
their infrastructure and improves their visibility • Distribution channels:
processes that have been long • Major players in the US by revenue in 2018: – Online
overdue thereby affecting the – Distributors: Direct and Third Parties
industry growth positively.
Average share of products
and/or services that are
partially or fully digitalized
from 41%3 Precises to 60%
during COVID-19 crisis
COVID-19 has impacted the
industry positively as demand
of some services have hiked: Key risks Media
cloud services, • P - Changes in federal, state and local regulations, tax inclusive • Industry Report; ComPTIA
videoconferencing and remote • E - Intense competitive space, consolidation in the industry, • Consulting firms’ Report: Big 4
collaboration. pressures on pricing, margin and cost cutting • Other Business Journals and Site: Business Insider, CNBC,
Tech companies are emerging • S - Evolving data privacy and protection legislation Statistica
stronger, becoming more • T - Threats of cyber and terrorist attack, network intrusions,
malware and email phishing
resilient and innovative helping
companies recover and thrive • E – Technology electronics when outdated and not recycled
properly contain hazardous material that are unsafe to the
amidst the pandemic
environment
• L - Intellectual property infringement, supplier and vendor quality

1https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-
technology-tipping-point-and-transformed-business-forever
Authors: Joshua Olabamiji (C2) 43
Restaurant
Quick Service

44
Restaurant – Key trends Revenues Costs
• With rising number of food delivery services, • Independent QSRs accounted for • Fixed costs: rent, mortgage,
Quick Service local QSRs have started separating a division >65% of global revenue in 2019 salaries, loan payments, license
(core) for food items which are cooked in bulk & then
stored to be supplied to the delivery services.
• American cuisine was >25% of global fees, and insurance premiums.
Variable costs: food, hourly wages,
revenue in 2019
Overview • Important QSR trends for 2021 and beyond that
• NA held >40% of global revenue in
and utilities.
will have impact on the global fast food • Operating costs as percentage of
• Quick service restaurant (QSR) 2019.
market growth and potential market revenue: labor (30%), food (25-40%),
offers certain food items that consolidation: • Gross margin for QSR could be 50- rent & utilities (5-10%), marketing
require minimal preparation 1. Streamlined drive-thrus 70% and profit margin is typically 6- and miscellaneous costs would vary
time and are delivered 9%. depending on specific QSR.
2. Increased mobile orders
through quick services.
3. Rise of hardware-less kiosks • QSR costs are more of OPEX types.
• Strategy includes bundled 4. Expanded delivery
pricing, limited menu, quick 5. Growing ghost kitchen
time, volume business and 6. More healthy food and beverage options
franchisee model. 7. Government regulations on healthy food
8. Inflation risk on fast food pricing and
• QSR accounts for >50% of sales consumer purchasing power
in the entire restaurant 9. Localized & bold taste/flavors of fast food
industry. Subsectors based on 10. Stronger consumer preference for QSR
service type: self service, brands that do well in sustainability and
assisted self service, full ingredient traceability
serviced restaurants. Also can
be segmented base on type of Value chain
food served such as
Bottlenecks
burger/sandwich, pizza/pasta,
chicken & seafood, 1. Farm (outsourced vendor): volume and quality control,
animal grow out time unmatched with demand.
Asian/Latin American Food,
others. 2. Storage & Distribution: unable to accommodate
promotions/peak seasons (undersupply)
• USA QSR market size $240B 3. Restaurant: slow order taking time; assembling station
(37% of global market) in 2020 time can’t catch up with ordering; crossover between
with 5% CAGR from 2020-2025. the drive-thru and in-store service crews slows down the
Total ~200K QSRs across USA entire operation.
and ~50MM customers in USA
eat at QSR daily. Authors: TBD 45
Restaurant – Competitors Customers Suppliers
• There are big, global or • Based on what they want and when they • Upstream:
Quick Service international players across the visit the QSR Meat producers, poultry
(flexible) countries while we also have non-
chain, local QSR.
– Breakfast buyers Machinery & Equipment
Potato producers
– Lunchtime loyalists
Coronavirus impact • We can segment the market into Vegetable /fries manufacturers
Burger/Sandwich , Pizza/Pasta, – Primetime patrons Bakeries
• Impact: dining areas are Technology Logistics
Chicken/Seafood , Asian/Latin – Weekenders
temporarily closed by Gov Uniform producers
American foods, others. – Devoted diners
order, indoor restaurant sales
• The competition is relatively steep • Downstream:
dropped 36.5% 2019-2020. • Based on their eating patterns and how
and varies in different continents, Self-ordering kiosks
However, in the long run low they visit the QSR
regions and countries. Packaging companies
priced and convenient food – Working professional Payment platforms
will still remain popular. • Major Key players in the Fast food Text message marketing platforms
– Students and teenagers
Contactless services such as Market: McDonald’s Corporation,
Burger King Worldwide, Domino’s – Families • Oder size: In Bulk and in advance
drive-thru and stay-at-home
Pizza Inc., Yum! Brands Inc. (KFC, • Marketing Channels: location,
order demand surged: new Pizza Hut, Taco Bell, The Habit), transaction data, and visit frequency
customers, order volume Wendy’s international Inc., Doctor’s can help QSRs better understand the
during the weekdays, Association Inc. (Subway) customer journey and choose the
middays. Packaged meals relevant channels. The channels are as
overall sales surged 225% follow: In-store ad, Mobile-ad, Display-
2019-2020. ad, TV-ads, and Messaging platforms.

• Actions: keep prices and

costs low; own or partner Similar industries Key risks Media
with online food delivery • Fast Fashion: low-cost mass • Health awareness drives customers to • QSR magazine, consulting firms’
platforms to offer delivery production is outsourced to focus on alternatives (freshly made food, reports
and pick-up, card/online resale, highly adaptive to healthier ingredients, vegan) • prnewswire, grandviewresearch,
payment options; closely customer’s changing needs. • Changing consumer needs, trends wearemiq
monitor the raw material • Inconsistent quality control across
supply in order to improve chains
restocking; execute health • Price fluctuation challenges cost control
and safety strategies.
• Alternatives, new entrants who also play
on online delivery platform

Authors: TBD 46
Retail
USA

47
Retail – USA (core) Key trends Revenues Costs
• Seasonality is a big factor in retail sales – • Traffic (traffic/online), Conversion • Breakdowns: Cost of goods sold,
large portion of sales occur in holiday season rate (visits vs. customers), Basket Returns, Inventory management
/ end of year. size (driven by customer spending), (storage and stock), Distribution,
Overview • Digitalization and the emergence of online Avg price per item, other revenue – Delivery, Labor, Real estate, Online
retailers after sales services retail – technology cost
• Industry consists of
• Social media presence has a large impact on • Key metrics: Sales per square feet,
department stores, wholesale
brand strength and perceptions. Inventory turnover, Total revenue =
retailers, discount stores, traffic * conversion rate * basket
speciality retailers, and online • Omnichannel retail (multichannel approach
to sales) is growing through e-commerce size * avg spending per person
retailers. Amazon and other
development or acquisition. In other words,
online retailers caused major
the retails need to focus on the entire
disruption in the industry by journey of the customer not the customer’s
lowering operating costs and individual experience on different channels.
passing savings to customers. • Turning shopping into more memorable
Technology also reduced customer experience
bargaining power of retailers • Taking stand or steps toward political and
as customers can easily economical issues
compare prices online. • Use of AI to understand the customer
behaviour better
• Key success factors:
• Augment the experiences with the
Branding, sales experience,
technology
personal touch, solid
inventory, shelf space
optimisation, layout Value chain
management
Typical value chain for retail industry

Common bottlenecks – shortage in raw material supply, overcapacity in manufacturing, inventory insufficient to meet demand,
transportation blockage.

Authors: TBD 48
Retail – USA Competitors Customers Suppliers
• Key success factors: digital • Segmentation: individual (buyer vs • Segmentation: manufacturers,
(flexible) differentiation; supply chain sellers), and corporate. distributors, independent
resiliency; health and safety • US ecommerce penetration in total retail craftsperson, import sources.
Coronavirus impact strategy; cost alignment Industry sales in US in 2020 is 21.3%, meaning in-
segmentation: by distribution store sales still make up a large
• The traditional retailers who channel or by product. proportion in retail business.
do not have strong technology • Fragmented, highly competitive with • Young adults and working professionals
ability are affected the most few dominant players; unorganized of age between 25 and 64 account for
by the pandemic due to outlets are being replaced with more than 60% of the US population and
lockdowns. High-performing hypermarkets and big chains. dedicate more to online purchase.
traditional retailers have been
• Largest and most mature market is • Customers prefer to shop for grocery in
developing their own
North America; Fastest growing in-store retailers while purchasing non-
ecommerce and converting
market is Asia Pacific. perishable products online.
some of their stores into more
of places for experiencing • 2019 top 5 retailers in the US with
products. This together with more than $100B in revenue each US population by age in 2019 (%): US digital buyers by age in 2020 (%):

(total 10% of market): Walmart,

14-24 16 14-24 18

online channels gives 25-64 64 25-64 68

consumers a holistic and Amazon.com, The Kroger Co., 65+ 20 65+ 14

personalized shopping journey. Costco, Walgreens Boots Alliance. US ecommerce sales by product category in 2020 (%):

Books, Music, Video 63

• Some key actions the retail Computer,

Electronics
50

industry is undertaking post Toys, Hobby 48

COVID-19: Office Equipment

Apparel,
39

37
Accessories
– Focus on purchase and Others 74

customer analytics to Walmart (retail representative) sales by product category in fiscal year 2021 (%):
better understand buying Grocery 56

habits and tastes during General merchandise 32

and post the pandemic

Health and wellness 10

Others 1

– Build more resilient supply

chain through better Similar industries Key risks Media
management of suppliers, • E-commerce has similar value chain • Data security across the value chain • KPMG.com.au; Technofunc.com;
warehouse and inventory, to retail industry. Online retail is marketingdive.com, emarketer.com
• Slow in adopting technologies
product and vendor part of e-commerce. • Relying on suppliers of goods • Industry reports and consulting firms
analytics
• Real estate to some extent is the • Increasing awareness on
retail of residential/commercial sustainability
buildings.
Authors: TBD 49
Airline
LATAM

50
Airline Key trends Revenues Costs
• Reduced luggage dispatch (reduced • People (85%): • Fuels and Lubricants - 30%
(LATAM) flight weight and reduced flight – Economic, Executive and 1st • Staff - 17%
losses due to delay) Class (Irrelevant Share) • Insurance and Maintenance - 15%
• Marketing of airline tickets through – Ticket, Miles and Luggage • Depreciation and Amortization - 13%
Overview miles and travel websites • Loads (15%): • Operating Expenses - 12%
• Average ticket increase in the last – Volume and Weight
• 350MM passengers/year (2018 • Fees - 7%
decade
LATAM reference) • Other Costs - 6%
• Barriers to entry: regulation, size of
• Prospects for 100% growth in players and high initial investment
air traffic over the next 10 • It’s a highly technological industry -
years in 2017, had a 3,2% share of R&D
global investments - and is expected
• Average profit margin of to have lots of innovation in the
healthy market players is short and long run, such as airtaxis
between 10% and 20%

• Sector highly regulated

• There are 2 main segments of

commercial aircrafts:
regional jet, with up to 100
or 150 seats (main players: Value chain
Embraer and Bombardier) Bottlenecks
and traditional plane, with 1. Build the plane (mostly cast aluminum and copper are
more than 100 seats (main used, as copper improves the mechanical properties of
players: Airbus and Boeing) aluminum, such as corrosion resistance and good
conductivity, thus supporting changes in temperature
• There also the private jet and pressure)
and military planes sectors 2. Fuel the aircraft (aviation kerosene, QAV, is used in jet
turbines, also used in helicopters with turbine engines
or smaller airplanes with turboprops)
3. Performing the air transport service (airplane size and
airplane flight weight are important restrictions)

Authors: TBD 51
Airline Competitors Customers Suppliers
• The main movement in the market • The two main reasons flights are • Planes:
(LATAM) in recent years is the merger of LAN business and leisure, whose – Very oligopolized market with
and TAM, making LATAM a reality in seasonality are opposite: While Boeing and Airbus dominance
2012 demand due to increases in leisure • Fuel:
Coronavirus impact • Market is concentrated in Brazilian school holiday periods, reduces in
– In Brazil, the main players are
players but with active players from business.
• Sector strongly impacted by Raízen and BR Distribuidora
other countries such as Argentina, • Internet and airport purchases are
the pandemic with the fall in • Insurance and Maintenance
Chile, Colombia, Mexico and Panama the predominant means of selling
travel (65% less passengers) tickets – Engines
• Domestic market is much more
due to social isolation and concentrated then international – Software providers (ex: GPS and
the increase in the dollar communication)
• Key International Players: LATAM
(30% - 40% against LATAM (Chile and Brazil) with 23% of Market
currencies) due to Share, Avianca (Colombia) with 10%
uncertainty in global markets of Market Share and Copa Airlines
(Panama) with 4% of Market Share
• The main strategy adopted • Key National Players: Gol (Brazil -
by the airlines was to reduce 93% of domestic flights) with 11% of
costs to the maximum, Market Share and Azul (Brazil – 82%
offering 50% - 70% fewer of domestic flights) with 8% of
flights and restricting routes Market Share
with a lower operating
margin.

• On flights that have been Similar industries Key risks Sources

maintained, strategies for • Ground Transportation: substitute • Exchange (Most costs are dollarized • Airlines Earnings Releases
constant wearing of masks for travel by people while most revenues are in local • Latin American and Caribbean Air
and removing queues are the • Sea and Rail Transport: substitute currency) Transport Association and ANAC
main guidelines of the for international and national cargo • Liquidity (Most of the assets in these websites
sector. trips, respectively sectors are difficult to settle) • MBB Airline Sector Reports and
• Both offer lower cost with longer Insights
delivery time

Authors: TBD 52
Public Sector
Defense

53
Public Sector Key trends % of GDP (nacional budget) Costs
• Factors most relevant are economics • 1,75% of Public Budget (BR) • Administration: 41,9%
(Defense) and politics: Budget for defense is • 0,97% of GDP (BR) • Social Security: 33,6%
regulated by federal government • 15,2% of Public Budget (US) • Charges and Benefits: 6,8%
and overall economics performance
• 3,45% of GDP (US) • R&D and Others: 8,6%
Overview • In long run there is a small impact of
demographics
• The Defense Minister • (Army corresponds to approximately
• Influence of political-economic
commands the Armed Forces, 50% of the expenditures)
relations
which are divided between
• In Brazil, short run trend is having a
army, navy and aeronautics rising in defense’s budget
• This sector is highly • There is a continuous international
strategical for a country and community pressure to diminish
nuclear bombs around the world,
because of that, many of the
especially with Ican (an
information about it are
international initiative that aims to
classified permanently abolish nuclear
weapons) and the Treaty on the
Prohibition of Nuclear Weapons

Value chain
Communication and Technology
Services Contracting

Total Budget of the Union Budget of the Ministry of Purchase of Defense Vehicles
(Possible Bottleneck) Defense (Aircraft, Tanks and Ships)

Cleaning and Maintenance

Services Contracting

Authors: TBD 54
Public Sector Correlated Sectors Suppliers
• Public areas with synergies: • The defense sector is generally divided into two types of
(Defense) – Science and Technology companies: equipment manufacturers and service
– Infrastructure providers.
– Justice and Public Safety • Equipment companies manufacture tanks, warships and
Coronavirus impact • Private areas with synergies:
fighters commonly associated with the Pentagon and
include names known as Lockheed Martin, Boeing and
• There are no big impacts in – Energy (Nuclear Energy) Raytheon.
terms of budget or costs, but – Vehicles (Military Planes, Ships and Automobiles) • Meanwhile, service providers manage IT networks,
some countries used the
perform consultancy work and perform more common
Armed Forces to help with outsourcing work, such as base management and logistics
the distribution of vaccines for civilian and military agencies.
throughout the national
territory

• In Brazil, army started to

produce some controversial
medicines alleged to fight
the coronavirus

Key risks Media

• Fiscal risks: • Ministry of Defense’s official website
– Budget not guaranteed • Ministry of Defense’s management report
– Rise of waste with retirement and pensions • defesa.net
• Political instability

Authors: TBD 55
Agribusiness
Industry
Brazilian Soybean
Market
56
Agribusiness Key trends Revenues Costs
• The use of new technologies (precision • Brazilian soybean revenues (BRL • Variable Costs represents 70% of
Industry, Brazilian agriculture) has increased the productivity of billions): total costs, divided into:
Soybean Market •
soybean plantations.
China (Brazil's main importer) has entered
243
Othes;
Overview into new trade agreements with Tanzania to
170 14,36
reduce dependence on Brazilian soy. In 2020, Machinery
• Brazil’s soybean export share China imported 10 M tons (CAGR19-20: 19%). ;5
Pesticides
in the global market: 35% (83 ; 39,48
• The international uproar against 62% - Exported
M tons) - Biggest buyer: China deforestation has the potential to cause 38% - Intern Seeds;
10,79
(73%) drastic changes in business, especially when Consumption
– 134 M tons Brazil total it comes to a country the size of Brazil and
production (2020) its dependence on oilseeds.
– 0.8 M tons Brazil total 2019 2020
• The grain industry will have a huge increase
imported - Biggest seller: in demand in the coming years due to the Fertilizer
s; 30,37
Paraguay (88%) population increase: production in 2029 will • Estimated Industry Revenues CAGR
• Associations compound by be 28% higher than 2020 in Brazil. (2018 - 2024): 11.7% • Major fixed costs: leasing (60%) and
individual producers are • The market for soybean is driven by the • Revenue seasonality: Harvest depreciation (40%)
strong and have a 20% market increasing adoption of veganism in western (February-April)
share of soybean in Brazil countries owing to the popularity of plant-
– Planting: October-November
• Brazil’s soybean consumption rich proteins in the diet
– Cultivation: December-February
profile: ~98% (51 M tons)
animal feed and ~2% (1 M
tons) human consumption Value chain

Soybean
Supplies Storage Industry Distribution
Production

Costs:

Authors: TBD 57
Agribusiness Competitors Customers Suppliers
Key players Key importer, raw soybeans Key inputs
Industry, Brazilian • China (largest importer), imports 56M • Seeds (multinat. & cooperatives)
Soybean Market ton (73%) – Suppliers: Monsanto, Syngenta
• Spain and Thailand 2.3M ton (3%) • Agricultural machinery
Coronavirus impact Key buying industries – Harvesting & farming
• Social isolation stimulates • Food & animal feed industry – Crushing & grinding
demand for products that – Human consumption (~2% of – Suppliers: John Deere, Massey
allow longer storage time soybean meal) Ferguson, New Holland
(soy, corn, wheat and – Animal feed (~98% of soybean • Pesticides and fertilizers (P&F)
coffee). Products such as meal) – BR is highly dependent on
soybean oil had a price – Main customers: Bunge and JBS imports to produce P&F
increase of 87%. • Vegetable oil industry – Suppliers: Bayer and BASF
– Human consumption (soybean oil, • Trends in supplier services
• Devaluation of the Real plant-based meals) • “On–farm” services
increases the costs of inputs – Fuel production (soybean oil for – Crop management
such as fertilizers, since a biodiesel)
– Technical advice for planting and
large part is imported. In – Main customers: Cargill and for sanitary controls
2020, the production costs Petrobras
were 10% higher than 2019.

• Closure of factories and

companies will affect the Key risks Sources
availability of raw materials • Political • S&P Global Agriculture
and products. – The US Biden administration’s attitude towards the Amazon forest may affect BR • Tridge
soybean exports • FAO
• Despite the difficulties – Environmental activism
resulting from the COVID-19, • Economical
there was an increase (12%)
– High interest rates and lack of viable financing options driving farmers to high levels of
in soy exports from 2019 to debt
2020.
– Volatile exchange rate
• Environmental
– The expansion of the current soy cultivated area towards the Amazon forest

Authors: TBD 58
 FMCG
Industry
Global Personal Care
(PC) Market
59
FMCG Industry, Key trends Revenues Costs
• Increasing demand for premium • Revenue segmentation and revenue Major costs:
Global Personal products (USD Rev CAGR20-25 = for 2019 in USD Billion: • [High] R&D for innovation
Care (PC) Market 7.1%) over mass products (USD Rev
CAGR20-25 = 3.2%)
– Product Type: the top Rev are
[2] = 131; [1] = 81
• [Medium] Inputs
– Raw materials (chemicals)
Overview • Increasing demand for organic and – Distribution Channel: the top – Packaging
natural products ( USD Rev CAGR20- Rev are Super/Hypermarkets =
• FMCG Personal Care (PC) is a 27 = 9.3%)
• [Medium] CAPEX (intensive industry)
116; Convenience Store = 90
sub industry of the Beauty • [High] Marketing
• Pharmacies and drug stores – Product Category: Mass
Care industry. The PC is channels are the fastest growing Products = 317; Premium
subdivided in the sectors: Hair channels (USD Rev CAGR20-25 = Products = 136
Care Products [1], Skin Care 5.8%) – Geography: Asia-Pacific = 107;
Products [2], Bath and Shower • Moving away from animal testing Europe = 120; NA = 107; SA = 49;
[3], Oral Care [4], Men's • Growth of small niche products: Middle East & Africa = 23
Grooming Products [5], CBD (cannabidiol) products (USD
Deodorants and Rev CAGR19-26 24.8%), halal
Antiperspirants [6]. All the products (USD Rev CAGR19-29 12.9%)
data is covering the PC • Millennials customers are seeking
industry. customization in service and
products
• The PC industry has a • Trends toward eco - refill stations,
forecasted CAGR of 4.35% for better packaging
2020-2025. The global revenue
for 2019 was USD 470 billion Value chain
• The need for greater care for Stores
men, the demand for quality
of life, and the growth of the
population are all drivers of R&D Innovation Raw Material Manufacturing Marketing Distribution Supermarket
the market's growth

• Mature markets: US, Canada,

UK, Germany, France, Italy, Costs: E-commerce
Spain, Russia, Japan and South
Korea

Authors: TBD 60
FMCG Industry, Competitors Customers Suppliers
Key players: • Marketing channels: websites, Key inputs
Global Personal • L’Oréal: 9.1% MS, 30 Bi Sales Euro, shoppable social media • Chemicals
Care (PC) Market •
GR19-20: 10.8%
Unilever: 7.2% MS, 52 Mi Turnover
• Trends: online retail, natural and
organic products, customized service
• Vegetable extracts
• Packaging
Coronavirus impact 2019 and products, halal beauty, cannabis – Major role in perceived value by
• Procter & Gamble: 6.5% MS, 71 Bi in cosmetics customers
• Consumers are not being
Sales USD, GR19-20: 4.9% • Segmentations – Insight: personal care players
loyal to a brand and are
looking for quality and low- • The Estée Lauder: 4.4% MS – By product category have low buyer bargaining
• Colgate-Palmolive: 3.4% MS, 16 Mi ▪ Skin & Sun care power because suppliers deal
cost products
USD Net Sales, GR19-20: 1.0% ▪ Hair care with demand from various
Strategy to consolidate: product ▪ Oral care industries
• Impact on sales at retail, ▪ Baby care
innovation (40%) and M&A (37%) Trends
which is the main ▪ Color cosmetics
distribution channel • Vegetable extracts for natural,
▪ Men’s grooming
organic & vegan products
– By purchase behavior • Halal-certified inputs & production
• Encouragement of online ▪ High price (imported) processes
retail (e-commerce) and ▪ Medium price
increased products • Cannabis-derived ingredients
▪ Mass segment
consumption by the middle ▪ SMEs (handmade) • Strict ingredient safety standards
class

• Increasing direct-to-
customer distribution
supported by digital Key risks Media
platforms, online retail and • Contamination in natural & organic cosmetics. Producing organic products requires • Business of Beauty
websites to engage removing artificial preservatives from product formulations, increasing the risk of • Cosmetics Business
consumers bacterial contamination – cause of 76% of PC product recalls in the past 15 years • Beauty Independent
• Need for speed in innovation. COVID has accelerated the already intense pace to
• GR19-20 - Growth Rate overhaul product-innovation pipelines on a short notice and firms might not keep up
between 2019 and 2020. • Biopiracy intensification. The rise in DIY PC products and the poor economic outlook
may intensify the search for counterfeits

Authors: TBD 61
Tobacco
Industry
USA

62
FMCG Industry, Key trends Revenues Costs
• Political: Restriction of Tobacco marketing and sales to • Revenue Streams: • Key components of cost include:
Global Personal Youth through the ban: Vending machines sales; – Combustible products Taxes from governments, which
Care (PC) Market Packages < 20 cigarettes’ Tobacco sponsorships in
sports’ Samples.
– Reduced-Risk products ( New form about 60% of total
revenue. Raw Materials: which
Category products)
Overview • Smokeless Tobacco warning labels – Traditional Oral Products 8
comprise 7 – 12% of total
• “Modified Risk" Claims are supported by Science Revenue
• The tobacco industry comprises • Seasonality:
• Requires Disclosures of ingredients.4 • More OPEX heavy – Mainly in
people and companies engaged – Not really affected by taxes, R&D for new products
in the growth, preparation for • Increased taxes by the government seasonality although in certain
sale, shipment, advertisement, • Operating Expenses: R&D,
• Government increased regulation to reduce the use of markets cigarette consumption
and distribution of tobacco and Exchange rates
tobacco.5 in winter will be lower due to
related products. the cold weather and higher in • Capital Expenditure: Significant
• Economic: Effects of Increased Prices: Increasing price
summer due to outdoor use, Capital expenditure in Reduced
• In 2019, 14 out of 100 U.S. adults of Tobacco is the most effective way to reduce
longer daylight and tourism. 5 risk products.5 8
aged 18 years or older (34.1 consumption, especially for youth and young adults.6
• Gross Margin Cigarette
million adults) currently smoked • Social: E-cigarettes: Movement towards E-Cigarettes
Revenue Value companies: Philip Morris: 25%,
cigarettes.1 (aka smokeless cigarettes); Counterfeit Cigarettes:
Altria Group: 52%, Reynolds
Increases in taxes by governments result in a push 100% 86% 81% 76%
• The Top five Tobacco producing American 52%12
toward counterfeit cigarettes.6
countries are China, India, • Gross Margin Retail: Premium
• Environmental: Tobacco is both heavily fertilized and 14% 19% 24%
Brazil, Zimbabwe and the United 14.6%, Branded Discount 15.6%,
States.2 pesticide which causes environmental damage.7 0% Private Label: 18.6%, Fourth
• Alternative products : E-Cig, Heets, Roll your own 2018 2019 2020
Tier 15.7% 13
• Tobacco products include: (RYO) Combustible % of Revenue Reduced Risk % of Revenue

Smoked tobacco; cigarettes,

cigars, bidis, and kreteks. Loose
tobacco in a pipe or hookah Value chain Product
(water pipe). Chewed tobacco
chewing tobacco, snuff, dip, and Tobacco Farming First Processing Manufacturing Distribution Consumers11
snus; snuff can also be sniffed.3

Eastern Europe; 10% Australiasia;…

Latin America;…

Middle East and

Africa; 9%

North 1. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/adult_data/cig_smoking/index.htm 8. https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOAWWGJT/$file/BAT_Annual_Report_and_Form_20-F_2020.pdf

America; 5% 2. https://www.statista.com/statistics/261173/leading-countries-in-tobacco-production/ 9. https://www.pmi.com/investor-relations/overview/how-cigarettes-are-made
3. https://www.drugabuse.gov/publications/drugfacts/cigarettes-other-tobacco-products 10. https://www.youtube.com/watch?v=yGeAD9w8yM4
4. https://www.fda.gov/tobacco-products/rules-regulations-and-guidance/family-smoking-prevention-and-tobacco-control-act-overview 11. https://www.pmi.com/who-we-are/tobacco-facts/tobacco-economics
Western 5. https://philipmorrisinternational.gcs-web.com/static-files/9f1f0ec5-f5ec-4164-93ee-8057210a8205 12. https://csimarket.com/Industry/Industry_Profitability.php?ind=508
Europe; 9% Asia 6. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/economics/econ_facts/index.htm 13. https://www.statista.com/statistics/888025/gross-profit-margin-cigarettes-convenience-store-us/
Pacific;… 7. https://applications.emro.who.int/docs/Fact_Sheet_TFI_2014_EN_15314.pdf?ua=1&ua=1

Authors: TBD 63
Restaurant – Competitors Customers Suppliers
• Largest Tobacco producing • Tobacco Leaves are sourced from
Quick Service companies Globally are Reynolds
Undergradua
te degree;
7%
Graduate degree; 4%
independent farmers globally.
(flexible) American, Vector Group, British Associates
degree; 14%
GED; 35%
• Printer Paper Board: Sourced from
American Tobacco, Philip Morris various different small suppliers for
Coronavirus impact International, Imperial Brands, Some college the production of packaging
Japan Tobacco and Altria Group. 3 (no degree);
18%
Some
• Acete tow: Used in the
• Cigarette's sales have been High
school;
manufacturing of filter
declining over the past few High School;
22%

• Major players in the united states 20% • Fine Paper: Used in the
years on average of 5.5%
are four companies—Philip Morris manufacturing of cigarettes and
YOY, however the USA, Reynolds American Inc., ITG heated tobacco products.
coronavirus has slowed the Brands, and Liggett—accounted for Women; 13%
Men; 15% • Low supplier power due to low
decreased in sales by 2% about 92% of U.S. cigarette sales.4 switching cost. 8
from 3% due to the increase
in stress on potential • Substitutes: Others;
consumers, which has – E-cigarettes 23%
increased smoking.1 – Cigars
Philip
– Vape ITG Brands; Morris; 40%
• E-cigarette sales have 6%
– Nicotine patch
increased by 2% vs 70% in
– Reduced Risk Products5 RJ
2018-2019.2 Reynolds;
31%

Similar industries Key risks Media

• Big Food products (Junk Food) • Taxes • Government reports
• The way Big Food and Big Tobacco is • Government Regulations • Press releases from Tobacco
promoted is similar.9 • Alternative products – Cannabis, Companies
• Both products sold are unhealthy Alcohol, E-Cigarettes, ROY10 • News sites
and detrimental to the consumer in
the long term.

1. https://www.wsj.com/articles/during-covid-19-lockdowns-people-went-back-to-smoking-11611829803 6. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/adult_data/cig_smoking/index.htm
2. https://www.reuters.com/article/us-health-coronavirus-smoking-insight/big-tobacco-gets-a-pandemic-pick-me-up-idUSKBN27Z1ZR 7. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/adult_data/cig_smoking/index.htm
3. https://www.statista.com/statistics/259204/leading-10-tobacco-companies-worldwide-based-on-net-sales/ 8. https://www.forbes.com/sites/greatspeculations/2015/08/17/altria-in-the-u-s-tobacco-industry-a-porters-five-forces-analysis/?sh=3cf27ee8faa3
4. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/economics/econ_facts/index.htm#:~:text=During%20June%202018%E2%80%93June%2020 9. https://www.cspinet.org/big-food-sounds-lot-big-tobacco
19,of%20more%20than%20%246%20billion 10. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3661190/
5. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/tobacco_industry/brand_preference/index.htm

Authors: TBD 64
Intercontinental
Logistics
TBD

65
Intercontinental Key trends Revenues Costs
• Political: Protectionism, Wars and • Drivers (transport, storage, • Drivers: type of modal, Load
Logistics Conflicts, Economic sanctions, efficiency, occupancy rate of trucks, volume, Local operating fee.
Business Alliances between countries route optimization) • Breakdowns: (a) type of modal, (b)
Overview • Technological: Logistics • Breakdown: (a) number of products, fuel, (c)distance
• Intercontinental Logistics enables organizations that adopt smart (b) price per product • Key components:
customers from anywhere in the world digital strategies and frameworks • Revenue streams: shipping • CAPEX ( Trucks, trains, planes,
to buy directly from any Company or generate new revenue streams and
individual, delivering the product ships, storage places, containers,
directly at the consumer’s door.
enhance their business models. Rent, Hardware in general)
• Environmental: The companies that • OPEX heavy (Fuel, Employees,
• Rail (benefits: Low cost due to low fuel
consumption; Transports heavy loads; deliver environmentally sustainable maintenance, taxes)
Less risk of accidents / Disadvantages: It offerings stand to capture not only
has fixed and inflexible routes; You are new markets and customer segments
more likely to lose goods;) but price premiums as well.
• Sea (Benefits: Access to all countries
that have coastal areas; Economical way
to transport to other countries and
continents; Ability to transport goods of
various sizes / Disadvantages: Longer
delivery times; High cost with insurance
of goods; Bureaucracy in the
presentation of documents;
• Air (Benfits: Travel long distances in
less time; You don't have to stick to
traffic and the like / Disadvantages:
Limitation on the quantity of goods; Value chain
Higher cost; Need access terminals )
• Freight Trucks (Benefits: You can get
• Political: Protectionism, Wars and Conflicts, Economic sanctions, Business Alliances between countries
anywhere in the national territory, • Technological: Logistics organizations that adopt smart digital strategies and frameworks generate new revenue streams and enhance
which makes you more flexible; Little their business models.
bureaucracy regarding documentation;
Greater investment by the government • Environmental: The companies that deliver environmentally sustainable offerings stand to capture not only new markets and customer
in roads; segments but price premiums as well.
• Ease to hire and organize the route /
Disadvantages: High cost of loading due
to the direct impact caused by tolls and
fuels; Low load capacity; Greater
chance of losses, thefts and accidents)

Authors: TBD 66
Intercontinental Competitors Customers Suppliers
• Key success factors historically and • Marketing channels: sales reps, • Key suppliers: aircraft
Logistics currently: reliability in deliveries , online channels, television manufacturers (Boeing, Airbus),
efficiency in terms of schedule • Trends: increase the use of logistics, Trucks manufacturers (Mercedes ,
Suez Canal Impact • Players’ segmentation and relevant with the boom in e-commerce and Scania); ship manufacturers (Maersk,
splits: by products/merchandise the strengthen in relations between CMA CGM), container manufacturer
• Lloyd's List indicates that the (Maersk, CMA CGM) and Trains
• Competition intensity: high and countries
stranded ship was holding Manufacturers (Bombardier
fragmented. • Order size: depends on the industry
about $ 9.6 billion in trade Transportation, Fahrzeugtechnik
• Key players:
along the waterway each Dessau)
day. Is estimated that – DHL Supply Chain & Global
• Order size:
Forwarding (Healthcare,
,economic losses directly or – Air: Aprox 46 t
Technological)
indirectly linked to stranding – Ship: aprox 25000 Ton
– XPO Logistics (Consumer Goods,
exceed $53,57 billion. The – Train: aprox 100 Ton
Retail)
German insurer Allianz said
– FedEx Logistics (Consumer
the blockade could reduce Goods, Healthcare)
annual trade growth by 0.2
to 0.4 percentage points.

• Around 12% of global trade

flows through the Suez
Canal, and the impact in the Similar industries Key risks Media
Suply Chain could last for
• E-commerce: How the products are • Verticalization of companies that • Specialized media
months. transported and delivered to the sells products into a branch of
client are very similar. logistics; raise in price of fuel
• To avoid the Suez Canal,
some ship went to the long
route, around 6.5 thousands
km or 8 days of trip.

Authors: TBD 67
E-commerce
USA

68
E-commerce, Key trends Revenues Costs
• Economical: Better economical • Drivers: storage control, speed, • Drivers: freight, distance from
USA situation reflects in more buyers / fleet of trucks, scale, customer distribution centers, efficiency,
customers. experience in website (and occupancy rate of trucks, route
Overview • Technological: use of robots in indication of related products to optimization
fulfillment centers and automated buy) • Breakdowns: (a) fulfillment centers,
• Main segments: fashion,
electronics, toys, furniture vehicles or drones to do the last • Breakdown: (a) number of products, (b) long distance delivery, (c)last
mile / automated processes to (b) price per product mile delivery
appliances
increase productivity in the storage • Seasonality: Black Friday, Christmas
• E-commerce is a type of centers and others holidays
commerce through which • Environmental: use of clean fuel,
buying and selling is done such as electric vehicles
entirely over the internet. It is • Legal: legislation to protect
possible to sell anything: consumers
books, clothes, electronics,
food.

• B2C, B2B

• The global e-commerce

market size was valued at
$9.09 trillion in 2019 and is
expected to grow at a
compound annual growth rate Value chain
(CAGR) of 14.7% from 2020 to • Ordering - payment - sorting - packaging - logistics - [distribution center] - last mile delivery (trucks, mail, drone, vans)
2027) • Where are typical bottlenecks
• Brazil retail growth 16% – Sorting/packaging - productivity, efficiency
revenue $11 Bi – Logistics - time

Authors: TBD 69
E-commerce Competitors Customers Suppliers
• Key success factors historically and • Key customers: B2B and B2C • Key suppliers: Directly related to
currently: price, cost, efficiency • Marketing channels: Social Media, the e-commerce
• Players’ segmentation and relevant Virtual Advertising. TV, Google Ads. • Trends: growth, boosted by the
splits: usually marketplaces • Trends : Shopstreaming, Targeted quarantine worldwide
Coronavirus impact (products of several different marketing
industries)
• On one hand, e-commerce
• Competition intensity: high
was positively impacted by
covid-19, since most of the • Key players:
shopping was made in digital – Amazon: $386 Bi (revenue)
platforms and delivery to – Alibaba: $72 Bi (revenue)
consumers at home, boosting – Tencent: $73 Bi (revenue)
the sector.

• On the other hand, the crisis

also had a financial impact,
reducing the purchasing
power of the targeted
consumers.

Similar industries Key risks Sources

• Logistics, because the logistics is • Infrastructure such as roads, rail • Internet, ads, influencers
inside E-commerce. and among others. It is essential
because it impacts directly the
delivery speed.

Authors: TBD 70
E-cigarettes
USA

71
E-cigarettes Key trends Revenues and Costs
• The growth is mainly driven by: • USA is the main market with 6b $ in sales, about 34% of the
– Rising health concerns: higher use of tobacco products global market as of 2019, with tanks/MODS being the top-
alternatives (7,1% CAGR for e-cigs in 2019-2025 vs 2,2% for selling product segment.
Overview cigarettes); • Main sales channels: convenience stores, food, drug and mass
• E-cigarettes are devices that – Rising youth adoption: 20% of high-schoolers use e-cigs; 80% retail channels (53%), online and other retail channels (28%),
heat a liquid containing of millennials tried vaping vs 55% of gen X and 38% of vape shops (19%). Prices are $1-$15 for disposables and $25-
nicotine to create an aerosol boomers; $150/more for other devices. Liquid refills are priced $50-
– Channels: Spread of e-comm and vape shops is increasing $75/month.
inhaled by the user. They are
one of the fastest growing mkt penetration. • Main material costs are battery (55%), atomizing device (35%),
other (10%). 28 USA states tax disposable systems per milliliter
segments of alternative
of liquid and the other devices on a % of a specified cost.
tobacco products (15,5% CAGR
for 2012-2025 in the Americas, Revenues USA (b $) 10 9,4
where US account for more [+56,9% - 2019-25]
than 80% of the market as of 8
6
2019). They vary largely in 6
size, function, and price, with
4
3 main products: 1) disposable
devices; 2) rechargeable but 2
disposable vaping devices; 3) 0
personalized vaporizers (also 2019 2025
called tanks/MODS).
Value chain

Raw materials Manufacturer / Agent/dealer -> Marketing and Customers

(battery, atomizer, brand enterprise Retailer services
screen, other) (ODM, ODE
business model)

Authors: overview&trends; pricing, value chain 72

E-cigarettes Competitors Customers Suppliers
• Highly consolidated mkt, key players • Two main segments: young adults • Chip design solutions (Dongguan,
competing on prod innovation and and adults. EVOLVDNA, XUN HE), battery (Sony,
M&A. – Young adults: 18-24y. Growing LG, Samsung), cotton, silk and other
Coronavirus impact • Juul (Altria) and Vuse (British segment, 2.4% in 2012, 5.2% in accessories manufacturers (ADVKEN,
American Tobacco) brands account 2017, 7.6% in 2018 are current flashwicks, Mad Rabbit, Vaporwire,
• Decrease in revenue - The
for 80% of revenues. users. 4.3% of young adult VGOD, CKS, Cotton Candy and VCC),
2020 forecast for the e- Hardware and plastics
• Main players are Altria, BAT, current e-cigs users were never
cigarettes global revenue manufacturer.
Imperial brands, Njoy, Japan smokers before trying e-cigs. Sex
segment is 3.2% lower. This is negligible.
Tobacco International.
due to negative association – Adults: mostly flat and stable
• Philip Morris International competing Cost structure compared to
of smoking with COVID-19 since 2012, 4.2% among adults
with IQOS upstream (i.e. suppliers side)
together with the global 25-44 and 2.1% among adults
effort to reduce the number aged 45-64 (2018) are current
of active smokers. users. Sex negligible. Others;
• Channels: general retail, online, and 10%
• E-commerce channels growth specialty smoke and vape shops.
- With the increasing trend Daily users per channel: vape shop
toward e-commerce, online (59.1%), internet (42.9%), retail
retailing is also emerging as (19.7%) and smoke shop (23.2%). Atomizin Battery
a strong distribution channel g Device; ; 55%
35%
in recent times and is
expected to grow further,
thereby increasing the value
of distribution channels. Similar industries Key risks
• Plastics, hardware for raw materials • Counterfeit from China
• Razor-razorblade, printer-cartridge, coffee machine-capsule • Increased or new taxation (28 USA states currently taxed) and
for pricing (cigarette-liquids) limits (indoor smoking, OTC sales license)
• Tobacco, alcohol for regulations (i.e. US FDA) • Ban of all or flavored e-cigs highly supported by 50-60% of
pp>30 y.o.
• Growing health concerns (e-cigs can contain nicotine, heavy
metals, and other cancer-causing agents)
• Cannibalization/competition from other reduced-risk tobacco
products.

Authors: covid; competitors_1; competitors_2; customers&channels_1; customers; channels; suppliers; risks_1; risks_2;
risks_3; risks_4; risks_5. 73
Education
Europe

74
Education Key trends Revenues Costs
• Up to K-12 Segment to Dominate Europe Direct public funding continues to be the • Major cost components of any
(Europe) EdTech and Smart Classroom Market most important funding source for many educational institute mainly revolve
during 2019-2027 European universities. Public funding around the following 8 factors:
Overview • Europe EdTech and Smart Classroom majorly include – Block grant, Targeted
Market is expected to reach US$ funding, Project-based funding, Contracts
Future of Education Technology:
61,250.6 million by 2027 from US$
- Place focused bets Student and
20,571.2 million in 2019. The market is Philanthro Service- International Financial Other
- Embrace Blended Learning related… Public Support Expenditure Staff Maintaining
estimated to grow at a CAGR of 14.6% pic
Funding, 3% to s; 3% Facilities; Campus;
- Grow Strategically Funding,
from 2020 to 2027. 5%
students 3% 12% Accommoda
Funding from and
Number of companies focusing on • In Higher Education Space, LMS in Contracts and outreach;
tion and
business , 7% Conferences
different segment of market (2015) Europe is expected to grow at a CAGR of 4% ; 5%
almost 27% in 2020. Cloud-based LMS Libraries,
adoption stands at 12.5%. Student Museums,
Multimedia content… 343 Contributi and IT
• By 2022, Europe is expected to generate on, 9% infrastructu
Online course and… 421
the second-highest revenue in the LMS Pubic
Teaching res; 9%
Business… 179 and
market. LMS growth in Eastern Europe is funding Research; Running the
Systems, Security… 305 (National University;
at 16.9% annually. &
56%
8%
Higher Ed programs 222 Regional),
LMS 433 73%

Share of private investments (millions)3

Value Chain
Alternative $4,00
schools
$102,00
other
$288,00 Inbound Logistics Operations Outbound Logistics Marketing & Sales Services
Institutionals
$857,00
1. Students 1. Student Learning 1. Skilled Student 1. Brand Development 1. Management Alumni
Adult Learning $289,00
$629,00 2. Teachers 2. Development of 2. Skilled Teacher 2. Market Development Relations
Higher Education $161,00 $1.348, 3. Funds Teaching Skills 3. Skilled Researcher 2. Recruiter Relations
Preschool through 00 3. Development of 3. Clients Relations
$736,00 $1.608,
K12 Research Skills
00
2011 (in $MM) 2015 (in $MM) 4. Development of
Funds/Publications
Greater emphasis on Ed-tech platform over the
Technology, Research Training and Development, Teaching and Learning, Academic Administration, Procurement
last 10 years. The preschool through secondary Primary Support
school have received most of the investment,
but higher secondary education has grown the
fastest as percentage of total investment.
Secondary Support Human Resource, Firm Infrastructure
75
Education Competitors Customers Suppliers
• For Higher Education institutes, • K-12: Segmentation by age - • Support Services: Staffing, Teachers,
(Europe) competition lies mainly in securing students for kindergarten, Publishers, Educational Supplies and
better students and higher ranking Y-o-Y elementary school, junior high and Distributors, Awarding Bodies,
Covid Impact • A distributer level competition exists in senior high; segmentation by family Assessment Providers
the Support systems: Online income, urban vs rural schools, • In Europe, online education is
Despite the negative impact of
Certifications, IT Integrations - Blended • Higher Ed: domestic students vs increasingly becoming popular. In
COVID 19 outbreak on E-learning, Smart Class room features. international students, diversity Finland, 21% of individuals have taken an
economies of these countries, Top LMS Platforms: Blackboard, Moodle, ratio, income level, online course on any subject, followed
the demand for EdTech and Oracle, Microsoft, Ellucian, SAP, Workday • Corporate Education: online by UK with 19%, Sweden with 18%, and
smart classroom solutions has etc. In 2019, the top 10 Higher Education certifications, segmentation by Spain with 15%.
seen an upward trend owing to software vendors accounted for nearly industry sector - IT, distance • Tools and Channels: ICT Services, Digital
increasing demand for e- 45.1% of the global Higher Education Learning, Medical, Finance content, School Management Systems,
learning, virtual classrooms, and applications market • Student CBC: quality of mentoring, Educational hardware, E-learning
other digital technology • K12 - Most students attend schooling in networking, institute brand, facility, tools/platforms
solutions for uninterrupted their own school district, hence limited activities/experience, placements, • LMS in Europe is expected to grow at a
delivery of education to competition. But, on the supply end, overall expense, ranking CAGR of almost 27% in 2020. Cloud-based
students across Europe. The such as for smart classrooms, market is LMS adoption stands at 12.5%. By 2022,
expected to grow at a CAGR of 31.6% Europe is expected to generate the
sudden adjustments in
during the forecast period 2021 to 2026 second-highest revenue in the LMS
education systems and processes
market.
in the wake of ongoing
pandemic is pushing Similar industries Key risks
stakeholders to invest in modern
technologies and adapt to the • Business Coaching Market: online • Political: Visa Issues for students as a result of international politics
coaching and digital learning platforms; • Economic: College credentials, Talent retention in the fragmented market
evolving technology landscape in
global valuation of $325B by 2025 • Social: with rise of social media, students can mobilize issues quickly; universities
the education sector.
• Assessment Service Market: IELTS, require better management and faster de-escalation planning
GMAT, Corporate specific candidate • Technology: Cyber and security risks with growing EdTech platforms
assessment Tests, Games; global
• Legal: Public universities required to make compliance with legal authorities
valuation of $11.47B by 2027
• Environmental: Universities require to maintain proper level of health and hygiene
standards
Sources of Information
• BCG-Where-Is-Investment-Flowing-In-Education-Technology-June-2016, Financially sustainable universities 2 - European universities
diversifying income streams, Facts and Stats Universities of UK, Apps Run the World, Mordor Intelligence, Research and Markets, Business
wire, Deloitte - Europe top Higher education risk, 2016 ICF Global Coaching Study
76
Furniture
Asia

77
Furniture Retail Key trends2 Revenues3 Costs4
• Demand drivers include Projected global furniture sales revenue • Labor intensive industry
– Rapid urbanization between 2019 and 2026 (Revenue in • Main expenditures are connected with
Overview – Population growth billion U.S. Dollars)5 raw materials (plywood, natural wood,
– Increasing consumer affluence plastic, glass, metal fittings,
Comprised of the production, upholstery); with labor force; storage
(increase in disposable income)
distribution, and retail of furniture 37,5 & transportation(space taken up by
for residential and commercial use. – Shifting demographics (Rising no. of
112,5 furniture in relation to the actual
single-person households and nuclear
2026 material used in its construction is
families) 112,5
Expected to grow at a CAGR of 5.4% disproportionately large), marketing;
• Five emerging manufacturing countries product quality and brand reputation
between 2019 and 2026. 487,5
in Asia include Indonesia, Malaysia,
Global furniture market size ($ Bn)1 Philippines, Thailand, Vietnam.
30,5
750 • Shift to online retail platforms for
buying furniture, due to the availability 91,5
610 2019
of a wide array of home furnishings 91,5
products at affordable price.
396,3
• Augmented Reality is becoming an
important online marketing tool for Furniture Parts
furniture retailers, because it lets Hotel Furniture
shoppers visualize furniture pieces in Office/Corporate Furniture
their homes Domestic Furniture
2019 2026
In 2019, the APAC market Value Chain
accounted for almost half of the
revenue share of the furniture
Storage/
industry1 Raw Material Wholesale/ Marketing &
R&D & Design Production Transportatio
supply Retail Service
n

48% Costs Low to High Low to High Low Medium to

52% Medium Medium High

1. https://www.gminsights.com/industry-analysis/furniture-market
2. https://www.mordorintelligence.com/industry-reports/asia-pacific-home-furniture-market
3. https://www.ibef.org/download/Furniture_170708.pdf
Asia-Pacific Rest of the World 4. https://www.britannica.com/topic/furniture-industry

78
Furniture Retail Threats to the industry Customers Suppliers
• High cost and limited availability of • Three types of customer: • Raw Material Suppliers:
skilled labor – Residential (home, personal use) – Semi finished products: furniture
• Adopting e-commerce and – Commercial (businesses, offices, parts to be assembled later
technology hospitals) – Parts supplier: nails, railings,
• Improve operational efficiency and – Hotel (restaurants, resorts, decoration, glossing, paint
reduce costs hotels) – Outsourcing manufacturing some
• Consumers’ focus on sustainability • Marketing channels: parts
– Ads, Social Media, Websites • Key suppliers: China, Vietnam,
– Videos on YouTube, product Indonesia, Malaysia, and Thailand
reviews supply urgent raw materials, semi-
finished, and finished products
• Order size
• Order size: Just-in-time, small
– B2C: 1-3
inventory, quick delivery
– B2B: 1-100+
• Distribution Channels:
– Showroom/ online
– Factory directly on demand

Similar industries Key risks

• Sanitaryware products (Bathroom, • Rising competition, especially difficult to catch customer attention online
kitchen fittings) – Similar customers • Rising raw material costs
but usage of more machinery in the • Pressure to be eco-friendly and sustainable by customers
manufacturing process as compared
• Supply-chain shocks such as trade wars
to furniture industry which is labour
intensive. • Safety regulations, such as chemicals used, are turning away conscious customers
• Home furnishings (Mattresses,
Lamps, and other home décor) -
Similar customers

79
Commercial
Banking
Europe

80
Commercial Key trends2-5 Key Players Market Share
• Growth of Personalisation and Digitalisation Assets under management (€ bn) Concerns about trust, safety and
Banking in terms of customer service
3000 transparency results in less adoption
• Growth of AI used to help make decisions,
screen applicants for loans 2500
Biggest Markets: • Growth of Fintech as both an opportunity
7
2000 6
and challenge to growth
• Germany, UK, France, Italy, 1500 6
• Issue of 0% Interest in light of Covid-19
Russia, Spain Pandemic 4
1000
• Growth of governmental regulation, 4
Emerging Markets: especially regarding CSR, Sustainability and 500 56 4
Cybersecurity
• Poland, Czech Republic, 0 4
Revenue of Industry 4

HSBC

BNP SA

Agricole

Santand

General
Societe
Hungary

Credit

Group
3

er

e
Total assets under management/€ billion 3
Cost Breakdown 30500
30000 HSBC BNP
Fixed 29500 Credit Agricole Santander
• Depreciation of Assets (3%) 29000 Societe Generale Barclays
28500 Groupe BPEC Deutsche bank
• Amortisation (3%) 28000 Supporting Activities: Lloyds Intesa Sanpaolo
27500 Others
• Shareholder Dividends (2%) • Bank Infrastructure
27000
• Risk Management
Variable 26500
26000 • Tech Development
• Employee Wages (28%) 2018 2019 2020 2021 • HR
• General Admin (17%)
• Insurance Claims/Movements Value Chain
in Liabilities (20%)
• Credit Impairment (12%) Marketing/
Inbound Product Customer Service after
Fundraising Sales/
• Tax (Usually 12-16%) Logistics Concept Service Sales
Distribution
Average Profit Margins: 8-10%
Cost Mid to High Low Low Mid to High Mid Mid

81
 COVID-19 Impact Customers Suppliers
Commercial • Larger players are seeking to adapt their model to Main Customers Main Suppliers

Banking be more flexible as the market becomes

increasingly fraught; smaller players are struggling
• Breakdown of Services:
– Retail (Individual Clients): 35%
•
•
Central Banks: act as monetary supply for banks
Set interest rates and minimum reserves (see below)
to survive (Profitability per customer fell by 60%
and 12.5% of Banks were experiencing losses by – Assets/Insurance/Private Wealth: 11% • European Central Bank biggest supplier for banks in the EU
Competition 2020) – Corporate/ Commercial: 35% • Customers also provide money that can be used to issue
• Trends towards digitalisation increasing rapidly as – Investment Bank Services: 19% loans
Porter’s 5 Forces: digital banking has become more popular and • Tend to segment into low, medium and high value Central Banks and Monetary Policy:
• High competition between customers have had to access services remotely customers • Minimum Reserves refer to the lowest amount of money a
(since the Pandemic, website use has increased Marketing Channels commercial bank should have on hand to remain
established rivals (Top 10 Firms from 47-55% and bank app use from 49-57%) operational; conserves against “bank runs”
• Mixture of Traditional and Digital strategies
have just 44% market share • Economic fallout: large-scale government bailouts, • Fractional Reserve Banking: percent of deposits bank has
• Focus on trust, financial literacy and digital security
between them and an average low interest rates and economic stagnation have
Order Sizes
to hold in reserve as per the Central Bank’s instructions.
forced lots of banks to think about their business Lower the percentage, larger quantity banks have to lend
share of 4.4% each) models and how to operate going ahead (especially • Individual Customers: 1 Individual Account and invest
• High supplier power balancing the need to continue loan repayments • SMEs: 1 Treasury Account • Discount Rates: Interest rates Central Bank charges for
with societal needs from clients affected by Covid) • Average Individual Savings Across Europe: €15,284 Commercial Banks to borrow from them. Lowering these
• Low consumer power
Distribution increases money that can be borrowed
• Low threat of new entrants, • Local Branches of Bricks and Mortar Stores • Open Market Operations: Buys/Sells short term bonds from
growing threat of substitutes due • Online Services (becoming increasingly popular now)
government to increase governmental funds. Central Banks
can buy these directly, or spread the cost to Commercial
to Fintech firms Banks.
Success metrics: • Quantitative Easing: Central Bank buys other assets
Sources Key Risks (mortgages/loans etc.) from Banks. Provides emergency
• Being distinct from rivals
https://www.capgemini.com/wp-content/uploads/2020/12/Commercial- short-term cashflow but unsustainable in the long run due
• Unemployment and low interest rates following Covid-19,
• Offer unique services Banking-Trends_2021_web.pdf
decreasing profitability for banking services; forcing banks
to inflation
• Stay ahead of digital trends https://www.forbes.com/sites/alanmcintyre/2021/01/11/elastic-bands-and-
slingshots-define-banking-trends-for-2021/?sh=552121585175
to focus on survivability • Excess Reserve: Extra money Central Banks can loan on top
of the minimum reserve, for loans and investing. Main way
https://www.investopedia.com/articles/markets/020916/analyzing-porters- • New governmental regulations regarding arrangements for
that Central Banks can turn profits
five-forces-jpmorgan-chase-jpm.asp non-payment of loans, green investing and cyber security
https://www.businessinsider.com/largest-banks-europe-list?r=US&IR=T likely to disrupt operations. Note in particular the current Order Sizes
https://www.infosys.com/about/knowledge-institute/documents/banking- phasing out of an established law regarding issuing • Current Minimum Reserve: €150,204,000
Media industry-2020.pdf
https://www.segmentationstudyguide.com/understanding-market-
unsecured loans (IBOR) • Current Available Excess Reserve per Bank: €3,502,910
• Cyber-security is becoming increasingly important as banks • Interest Rates of ECB: -0.5%, 0%, 0.25%
segmentation/market-segmentation-examples/market-segmentation-
• Investopedia example-banking/ begin to move online and cyber attacks become more
sophisticated; banks who can’t make a smooth transition
• Financial Times https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr201105~a52448
4b55.en.html to online services are likely to suffer (238% increase in
• European Banking Federation https://www.pwc.com/gx/en/issues/the-economy/assets/the-future-shape- cyber attacks since 2019, 80% of banks have suffered Similar Industries
of-banking-in-europe.pdf cyber attacks in 2020; up from 13% in 2019)
• European System of Central • Digital Banking (do all their services online;
https://www.captain-finance.com/en/average-savings-across-globe
• Banks are having to move more their services online to becoming increasingly popular)
Banks https://www.pwc.com/gx/en/issues/the-economy/assets/the-future-shape-
of-banking-in-europe.pdf
retain their competitive edge, as especially as digital
• Retail Banking (exclusively focus on individual
banking becomes more prominent
https://www.infosys.com/about/knowledge-institute/documents/banking- financial needs)
industry-2020.pdf • FinTech companies are starting to replace core services
• Investment Banks (work with big companies and
https://www.bcg.com/publications/2017/financial-institutions-seven-rules- that banks traditionally offer, such as business loans and
financial institutions, and act as middlemen in
cost-excellence-banking card transfers; grown by 14% since 2019 ($44bn invested
high-profile financial transactions such as M&A)
https://www.ecb.europa.eu/mopo/implement/mr/html/index.en.html into it in 2020)
file:///Users/peterbayes/Downloads/210303-financial-statements-ara-
2020.pdf

82
 Sports
Industry
US Basketball (NBA)
83
Sports Industry – Key trends Revenues Costs
US Basketball • NBA doubled its size in terms of revenue in
the past decade and it’s expanding
• The NBA makes money primarily
through television (~50%), and the
• More than half of a franchise costs comes
from players’ salary, ~15-20% from
(NBA) internationally with streaming's and TV rights other half split between business operations expanses (executive
• Plays a major role in urban economics by merchandising, sponsorships, and salaries, rent, insurance and debt) and the
Overview helping the local economy of the place where tickets. other 2 main categories are team staff
NBA arena is located • Main drivers are the brand and non staff (insurance, practice facility,
• The league is composed of 30
• One of the main sports that raises the flag awareness (fan base size), most hotels on the road, aviation, food and
teams (29 in the United States
for no social discrimination, especially in the known players and ability to have a beverages) costs and represent ~10-20%
and 1 in Canada) and is one of
19-20 season on the bubble competitive team for the season • Larger market teams costs may include
the four major professional luxury tax for players and revenue sharing
• Technology plays a huge role both in terms of • Season starts in October and ends up
sports leagues in the United for shareholders
providing the best experience for fans and in June
States and Canada. It’s an 8
for data analysis for players performance • Top 5 team by revenue on 2019-2029
Billion USD/year industry that
improvement season: Golden state Warriors ($474 10%
revolves around basketball MM), New York Knicks ($421MM), Los Players Salary
• Legal aspects are very important once there
games and different revenue are a lot of important stakeholders and very Angeles Lakers ($400 MM), Houston 15% Business Operations
streams that can be made specific economic rules to regulate the Rockets ($308MM) and Chicago Bulls Expenses
from it. Team non staff costs
championship and keep it competitive ($300 MM) 59%
16%
Team staff costs
Revenue (Billion USD)
10
9
8 Value chain
7
6
Product Ongoing statistical
5
development Players Recruitment Training Games – product
4
analysis
3
2
Product
1 Revenue streams negotiation (TV, sponsors) Ticket sales Merchandise
0
negotiation
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020

Authors: TBD 84
Sports Industry – Competitors Customers Suppliers
Internal • Fans: 35% gate receipts • NCAA
US Basketball • Rivalry is high amongst NBA teams. • Media Outlets: 35% bid rights for TV • Universities
(NBA) Revenue sharing, salary cap and
ability split make teams relatively
Broadcasting • Other Basketball divisions
• Corporations: 15% corporate season • Low power: depends on NBA teams’
Coronavirus impact equal. tickets/ skybox seats interest and players performance.
External • Sponsors: 15% sponsorship revenues Draft is reversed according to last
How was the industry affected? • Rivalry in sports industry is high due season’s teams standings
• High power over Professional
• NBA revenues dropped 10% to low switching costs for fans. They Basketball industry
can choose any entertainment in
for season 2019-2020 to
television and there are other sports
$8.3Bn. NBA registered a offerings such as Baseball, Football
$800mm loss in gate receipts and Hockey.
and a $400mm loss in
sponsorships and
merchandise. An additional
$200mm in net negative
impact due to a player Similar industries Key risks Media
tweet over Hong Kong • MLS • NBA ticket prices, Fans switching to • Facebook, Twitter, Instagram, NBA
freedom. Salary cap at • MLB other entertainments (TV, Online App, ESPN
$90mm (10% drop) • NFL streaming)
• NHL • Other sports (NFL, MLS, MLB)
How is it dealing with impact?
• NBA Bubble in 2020 recouped
$1.5bn in revenues. NBA
Bubble expenses amounted
to $190mm. NBA season
References
https://www.statista.com/statistics/193467/total-league-revenue-of-the-nba-since-200
reduced to 72-game per https://www.investopedia.com/articles/personal-finance/071415/how-nba-makes-money.asp#future-challenges
season https://www.si.com/nba/2018/09/21/nba-teams-revenue-spending-breakdown-small-large-market
https://www.mbaskool.com/pestle-analysis/companies/18168-nba-national-basketball-association.html
https://www.investopedia.com/articles/investing/070715/nbas-business-model.asp
https://www.mbaskool.com/pestle-analysis/companies/18168-nba-national-basketball-association.html
https://prezi.com/hjntwu7zqcsg/industry-analysis-nba/
https://pt.slideshare.net/ThomasSalierno/national-basketball-association-industry-analysis
https://gbr.pepperdine.edu/2010/08/5-forces-industry-analysis/
https://www.assignmenthelpexperts.com/blog/nba-porters-5-forces-industry-analysis-assignment-help/
https://www.statista.com/statistics/193704/revenue-of-national-basketball-association-teams-in-2010/
https://www.investopedia.com/articles/personal-finance/071415/how-nba-makes-money.asp

Authors: TBD 85
Luxury
Goods
Latin America
86
Luxury Goods Key trends Revenues Costs
• Sales Expected to come back to 2019 levels • In 2017, total market (in Latin • High OPEX: such as hiring, training, visual
(Latin America) in 2022/2023¹; America), was evaluated in USD 7,5 merchandising modules and props
• Market is becoming more local¹; bi, one of the smallest of the world updates;
Overview • GenZ/Millenials are starting to enter this in total consume & • Security and Insurance &
• Luxury is seen the last level of market boosting sales to an expected growth • Per capita, Latin America is in • High Taxes to import the finished goods –
excellence. It was only with the of 180% by 2025; penultimate place, with a final price from 30% to 50% higher than
LVMH Group foundation, in 1987, • High awareness to social consume; USD11,8/person. other countries.
that this starts to be a • Brazil as market leader in Latin America,
structured movement with big estimated 20% growth by 2023 &
companies and professional
• Omnichannel and great digital market to
working. Luxury can be
attract new customers and entry new
manifested many ways and it’s
markets; also reducing barriers to access this
mostly divided regionally due to
market.
very specific environmental
characteristics or materials. It • Pre-owned luxury watches is expected to
can range from chocolate to reach $30 billion by 2025
fashion, shoes to cars, from
jewelry to mansions. In Latin Value chain
America the new millionaires
that rise economically tend to be Logistics along a supply chain
more discreet seeking safety.
Plan Plan Plan Plan Plan

Total Market value, in

billions of euros Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
281

217
Suppliers' Suppliers Focal company Customers Customer's
suppliers customers

2019 2020 2021 2022 2023

87
Luxury Goods Competitors Customers Suppliers
(Latin America) • The luxury market, in general is very
concentrated with the top 10
• Only the top income classes can buy
these.
• Relationship is changing from “get
the cheapest I can get without losing
companies holding more than 50% of • Low price sensitivity quality” to “we need to cooperate
Coronavirus impact the total sales. and become partners” &
• Increasing participation of millennials
• Main companies are LVMH, Kering and Gen Z is boosting demand. • More social and environmental
• The coronavirus presents a
and Estee Lauder. Many of the • Pre-owned market is now allowing awareness.
chance to reset and
famous watch brands are under the more people to own these • Extremely low number of suppliers
completely reshape the same parent company Richmond,
• Segmentation: for raw jewels. There’s a diamond
industry’s value chain due: which is forth on the ranking. cartel to keep supply down and
radical transparency and – Bargain Hunter
• Key countries: France and prices up.
sustainability rising as an Switzerland – Online Buyer
important customer buying – Only buys on travels
criteria; with drop in tourism – Seeks Exclusivity
more purchases are being
made locally;
• Omnichannel and digital
marketing is a way to
survive, but it kills the
returned revenue in already Similar industries Key risks Media
invested capital
(cannibalization) & • Traveling and Hospitality • Consume exchange from Luxury to • Specialized magazines
Wearables • Specialized retail websites
• Increase resilience by • Brand image (ESG)
staying relevant to customer,
• Raw material limitation
adjusting CAPEX&OPEX and
• E-Commerce new competitors
elaborate contingence
• Competition increase
actions.

References
https://www.bain.com/insights/how-covid-19-has-accelerated-the-transformation-in-luxury-video/
https://www.bain.com/insights/pandemic-spurs-transformation-of-luxury-market-infographic/
https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/State%20of%20fashion/2021/The-State-of-Fashion-2021-vF.pdf
https://www.researchgate.net/figure/Demand-features-CSF-and-Supply-Chain-practices-observed-in-the-case-studies_fig4_227420902
https://www.supplychainmovement.com/wp-content/uploads/Mindmap-for-the-Fashion-Luxury-Goods-Market.pdf
https://www.publichabit.com/blogs/publicknowledge/crash-course-on-fashion-supply-chain
https://www.institutodoluxo.com/post/2019/10/16/sem-crise-o-mercado-de-luxo-estima-alta-ainda-maior-at%C3%A9-2023?gclid=Cj0KCQjw5eX7BRDQARIsAMhYLP_PTFcO6v8oQa5oeqFLguBbCKcgG0JDiC_L_kLQlu1aJAuQSaElBfUaAtc2EALw_wcB
https://business.ebanx.com/en/blog/the-latin-american-market-potential-for-2021
https://www.businessoffashion.com/articles/global-markets/luxury-fashion-latin-america-mexico-brazil-jhsf
88
https://www.nationaljeweler.com/articles/9908-pre-owned-luxury-watch-market-growing-quickly-says-mckinsey
https://www.gq.com.au/style/news/the-worlds-top-10-luxury-brands-generate-more-than-half-of-all-global-luxury-sales/image-gallery/ae47ebabef6b90f7f1175375329ef65b?pos=3
Livestock
TBD

89
Livestock Key trends Revenues Costs
• Environmental impacts • Revenues from Cattle and Calves are • Larger costs of production are related to
– Water emissions (7005 L diluted water 75% of the gross income. the feeding, Labor and Management, Fuel,
eq/CB), cumulative energy demand (1110 Repairs etc [6].
Overview MJ/CB), and land use (47.4 m2a eq/CB).
• Livestock and poultry account – Air emissions were acidification potential LIVESTOCK TOTALS - GROSS Feed Costs including
for over half of U.S. (726 g SO2 eq/CB), photochemical ozone INCOME, USD Billions Range or Pasture
Veterinary & Livestock
agricultural cash receipts, creation potential (146.5 g C2H4 eq/CB), 45 Supplies
USD 90 Interest on Borrowed
often exceeding $100 billion global warming potential (48.4 kg CO2 29
USD 88 Operating

per year [1]. The United eq/CB), and ozone depletion potential 18
Other Direct Cost (Fuel,

(1686 μg CFC11 eq/CB). USD 86 Repairs, etc)

States has the largest fed- 17 202 Non-Operating Interest

• Consumer Benefit (CB) = 1 kg of of USD 84 Cost

cattle industry in the world, 45
Depreciation of

consumed, boneless, edible beef [3]. USD 82 Machinery / Buldings

and is the world's largest 9
Other Overhead (Labor,

producer of beef, primarily USD 80 21 Insurance)

Operating Labor &

high-quality, grain-fed beef USD 78 Management

for domestic and export use. 2016 2017 2018 2019 2020
Texas, Iowa, California, Years
Nebraska, and Kansas lead the
country in sales value of
livestock and their products. Value chain
The cattle sector is the
dominant source of value in
Texas, Kansas, and Nebraska
[2].

90
Livestock Market Customers Suppliers
• Market Size: $66bn • Demand for meat, poultry, and dairy products is • Beef Cattle Production in the US
• Number of Businesses: 741,241 driven by domestic food consumption trends. • Livestock Production Support Services in
• Industry Employment: 779,386 Forecast production in U.S show a reduction in the US
Coronavirus impact the production. Small operation will tend to • Tractors & Agricultural Machinery
• This industry has no major players
• The industry had a minor supply local markets, specializing in heritage Manufacturing in the US
with a market share of greater than
breeds, or raising humanely treated or hormone-
impact of -0.41% during the 5%. • Farm, Lawn & Garden Equipment
free animals. [9]
year 2020 [7]. • Major Players: Wholesaling in the US
– Five Rivers Cattle Feeding LLC • Corn, Wheat & Soybean Wholesaling in
• Beef cattle herd sizes are
– Cactus Feeders Inc. the US
still too large, which has
– JR Simplot Company [8] • Cattle & Hog Wholesaling in the US
contributed to weak beef
• Farm Supplies Wholesaling in the US
prices. However, due to
supply disruptions, prices • Veterinary Services in the US [8]
have been rising at the retail
level. Some supply
elimination has occurred in
Q1 2021 [8].

Similar industries Key risks Media

• Poultry and eggs • Production industry is expected to decline at an • USDA website provides best
• Dairy Products annualized rate of 4.9% to total $69.2 billion, information about the industry.
• Live hogs and pigs largely due to declining red meat prices.
• Cattle producers are expected to trim herd
numbers, slowing price declines [8].

91
Vaccine
Industry
USA

92
Vaccine Industry Key trends2-5 Global Vaccine Revenue (2020): US Vaccine Adoption 5,9
• Pfizer, Merck, CSL Behring, Novavax, $47B 6,7 Concerns about trust, safety and transparency
Emergent BioSolutions, Inovio currently results in less adoption
Revenue of Top 3 Players 6,7
dominate the US market share (65%-70%)
Overview 1,2,3 Players Revenue Vaccines Percentage of People in the
• High demand in immunization, launch of
novel drugs or vaccines, and potential Merck & $8.4 billion, Rotavirus, varicella, US who believe it's important
Public Cloud Co 18% share pneumococcal, HPV, parents vaccinate their
Projected US vaccine sales pipeline candidates cytomegalovirus, pneumococcal
• Major drivers are increased awareness, children
$30B by 2027 (vs $104.9B globally) Pfizer $6.5 billion, COVID-19 vaccine, Respiratory
Global US vaccine sales (2020) nationwide vaccine implementation, and 14% share Syncytial Virus, Meningococcal, 120 94 96 88 94 89 93
$47B rising vaccine coverage Pneumococcal, Clostridioides 100 84 84 91 81 82 85 79 82 84
difficile 80
• With the booming population and growing
CSL $1.1 billion, influenza 60
Major cost driver prevalence of infectious diseases, the
Behring 3% share 40
R&D (44% total cost) demand for different types of vaccine is 20
expected to keep rising 0
Vaccine market segments 2 • Major focus on finding a breakthrough
US Vaccine Cost Drivers 3
vaccine against COVID-19 with high
∙ Type (recombinant & conjugate, concentrated on diagnostics kits, safety
21%
inactivated, live attenuated, wearables, and treatment vaccines R&D
inactivated, toxoid, others) • COVID-19 pandemic has disrupted the supply 44% Admin
∙ Route of administration chain 9%
Sales and Marketing 2001 2015 2019
Distribution
(parental, oral, other) • Pfizer, Moderna and Johnson & Johnson Production October 1988 to March 2021
∙ Disease type (viral,bacteria) increased COVID vaccine production 17%
∙ Disease indications (COVID, 7%
INFLUENZA VACCINE PETITIONS
• Improved national and international 7,593 damages for injury
hepatitis, influenza, MMR, ect) partnerships for successful production 197 damages from death
∙ Age group (pediatrics, adults,
travelers)
∙ Distribution channels (hospital & Value Chain
retail pharmacies, govt
suppliers, institutional, other) R&D, interest, Sales and R&D is the
Administration Distribution Production
tax, earnings marketing major cost
Major Competitors 2 driver
∙ United Kingdom Cost 44% 7% 17% 9% 21%
(GlaxoSmitHkline, Astrazeneca) High Low Medium Low Medium
∙ France (Sanofi) 1.https://www.marketwatch.com/press-release/united-states-vaccines-market-research-report-with-size-share-value-cagr- 5 .https://blog.technavio.com/blog/top-10-vaccine-manufacturers
∙ Australia (CSL Limited) outlook-analysis-latest-updates-data-and-news-2019-2030-2021-07-06
2. https://www.fortunebusinessinsights.com/industry-reports/vaccines-market-101769
6. https://www.fortunebusinessinsights.com/blog/top-5-companies-in-the-vaccines-market-2020-10344
7. https://www.statista.com/statistics/541023/petitions-seeking-damages-for-injuries-or-death-caused-by-vaccines-us/
3. Mercer Management Consulting . 1995. Testimony on vaccine policy before the U.S. House of Representatives Committee on 8. https://www.nbcnews.com/news/us-news/u-s-vaccine-production-starting-surge-n1261343
Commerce. June 15 9. https://www.statista.com/chart/20509/americans-unsure-about-vaccine-safety/
4. https://www.alliedmarketresearch.com/vaccines-market

93
Vaccine Industry Key trends2-5 Entry barriers Suppliers
• Threat of substitutes: • Product patents For the manufacturing process:
Key risks – Alternative methods for preventing an • Knowhow in complex domains • Ingredients: salts, serums, antigens,
infection (e.g. mosquito nets against (production, clinical development ad adjuvants
• Some markets for critical malaria vaccines) regulatory approval process) • Equipment: tanks, mixing equipment
manufacturing technologies and
– Therapies for dealing with the • High fixed costs - manufacturing scale up • Controls: Temperature/other process
equipment (ultra centrifuges)
consequence of being infected (e.g. (facilities for bulk antigen production are controls
are dominated by one or two
anti-virals are substitutes for flu sunk costs) • Filling – syringes, vials, tubes
suppliers → command significant
vaccines) • High regulatory costs • Packaging/Storing – based on country
buying power
• Some raw materials needs to be • Mis/disinformation (Vaccine skepticism) specific requirements
ordered in advance up to two • Supply chain threats Quality checks: Must meet specifications before
years – need to think of • Doctored or fake vaccination cards use
inventory and storage (Telegram and WhatsApp groups with up to Key suppliers: urgent raw materials coming from
considerations 500K followers can purchase cards typically other countries/far geographies
• Huge change in consumer costing $100 account with cryptocurrency) Order size: Mainly in bulks, advanced orders
demand/behavior (price
decrease or performance incline Customers Global value by country group
of substitutes)
(Value USD, Volume doses)
• Procurement delays and global Customer Role Examples of persons and organisations carrying out
shortages are main reasons for 0,9B, 0.2B
role definition the role 0,2B, 0.1B
stock outs 1,4B, 1.8B
• New regulations from the Consumer Person who is • Children, adolescents, adults
vaccinated Self procuring
government on vaccine approval HICs
• Heavily relied on machines and Buyer Person/organi • Consumers Self procuring
automation, today it is zations • Prescribers
MICs
profitable but could be a threat 8,2B, 2.7B UNICEF (Gavi)
selecting the • National Immunization Technical Advisory Groups
later PAHO RF
vaccine which • Governments
s used • Supra-national organisations (eg. UNICEF) 22,5B, UNICEF
0.6B procuring MICs
Payer Persons/organ • Consumers
izations • Private insurances
Similar industries financing the • Federal and regional (state) governments in the HIC = High Income Country
MIC = Middle Income Country
• Pharmaceutical industry purchase vaccinating country PAHO RF = Pan American Health Organization Revolving Fund

• Differences in order size and • NGO’s eg. GAVI, other international donors GAVI = Global Alliance for Vaccines and Immunization

delivery time
94
 Cloud
Computing
Latin America

95
Cloud in Latin Key trends2 Revenues3 Costs4
• "To attract cloud infrastructure to the Latam at a glance Server Cost: Rack Cost:
America region, it is critical that governments in Expected Revenue From Cloud Services [2021- • Hardware Cost • Cooling Cost
LAC develop policies to address the 2023] in Billion Dollars
• Software Cost • Power Cost
Overview expected demand by fostering new green
• Maintenance Cost • Facilities Cost
Public Cloud energy generation projects, investing in
transmission networks, and developing a 20 18,1 • Network Cost • Real-Estate Cost
Pros: 18
• Services are owned and operated competitive market place.”
16 Private Cloud Cost Private Cloud Cost
by a third party provider • "SMEs using cloud technologies grew 13,2
• The maintenance is bared by the jobs nearly twice as fast as SMEs not in 14 Breakdown Breakdown
service provider the cloud (Boston Consulting Group, 12 2
9,6 44 4 112
• Pay-as-you-go model. Thus, the 2013)." 6 4
10 30 5
setting and operating cost is less 35
• Amazon announced the construction of 8 8 8
Cons:
• Lesser security as the platform is Edge infrastructure in Bogota and plans 6 9
shared new data centers for Argentina, Chile. IBM 4 19
• Lesse flexibility & control over the is also expanding its data center in Costa 10 15
2 24
cloud environment Rica with more than US$ 21 million of 12
investment. 0
Hybrid Cloud 2021 2022 2023 1 Development staff costs 0

Pros: 2 Management costs (Executive, Audit, security)

• Greater flexibility & more 3 Application Software costs
deployment options
• Cloud bursting is also possible 4 Server infrastructure hardware, maintenance,
facilities etc.
Cons: 5 Infrastructure software
• Network complexities &
compliance issues
• Can be extremely expensive
Value Chain

Private Cloud
Pros: Infrastructur Platform Service Data
• Dedicated to a single organization Consulting Customers
e Providers Providers Providers Integrators
• Higher security as the resources are
not shared
• Greater flexibility to control the
cloud environment
Cons: 1. https://www.researchgate.net/publication/297591882_Pricing_Schemes_in_Cloud_Computing_An_Overview
2. https://www.ibm.com/br-pt/cloud/learn/iaas-paas-saas
• Expensive than public cloud. 3. https://www.sitesbay.com/cloud-computing/cloud-computing-difference-between-public-cloud-and-private-cloud
• Purchase and maintenance has to 4. https://www.zdnet.com/article/pandemic-accelerates-cloud-adoption-in-latin-america/
be bared by the organization 96
Cloud in Latin Threats to the industry Pricing
Security: Price Drivers Amazon S3 Pricing (Standard Storage)
America • Data Breaches: occur when unauthorized • First 1 TB / month $ 0.0390 per GB
Coronavirus Impact individuals access cloud systems and interfere • Next 49 TB / month $ 0.0383 per GB
with the data stored in them. • Next 450 TB / month $ 0.0377 per GB
Pandemic accelerates cloud • Insider Threats: are usually individuals with • Next 500 TB / month $ 0.0370 per GB
adoption in Latin America legitimate access to an organization’s cloud $ 0.0364per GB
systems. Whether they happen intentionally or • Next 4000 TB / month
$ 0.0357 per GB
• The Covid-19 pandemic has maliciously, insider threats will cause a lot of • Over 5000 TB / month
prompted decision makers across harm to your cloud system.
Latin American to boost IT
spending in 2021, with 39% of
organizations in the region
planning to invest in cloud Customers Benefits Services
computing.
• Financial Services • Cost reduction: user do not need to Infrastructure as a Service (IaaS):
• Regarding the future of digital • Government purchase or maintain servers to run • A vendor provides customers Pay As
infrastructure in Latin America their business. You Go access to storage, networking,
• Telecommunications
between 2020 and 2024, IDC • Increased mobility: Techonoligal servers and other cloud computing
expects growth of 43% for IaaS, • Automotive
solutions can be used from any location resources.
11% for hyper-converged • Nonprofit & Others or device which allows for faster firm
infrastructure and 4% for LCaaS growth and diversification
(Local Cloud as a Service). By Ex Arezzo&Co, leader in the footwear, bags and Platform as a Service (PaaS):
female accessories segment in Latin America, has • Scalability: firms can expand without • A service provider provides access to a
2024, 50% of businesses in the
chosen IBM Cloud to help offer a secure, faster incurring increased infrastructure costs. cloud-based environment in which
region that are using Wi-Fi will
adopt Wi-Fi 6. shopping experience in any sales channel for its users can develop and deliver
nearly 10 million customers. Modernize key applications. The provider provides
• Accenture worked with the Sao workloads including sales processes and inventory underlying infrastructure.
Paulo state government in Brazil control. More agile and flexible omnichannel Players and Market
to create a cloud-based online strategy, while prioritizing security to run complex
support system to provide Players: Software as a Service (SaaS):
workloads and deliver enhanced customer
residents information on COVID- experiences. • Amazon, IBM, Google, Microsoft, • A service provider offers software and
19. Such online "triage" served Salesforce, Oracle, SAP, HP applications over the Internet. Users
Stone, a Brazilian fintech that offers financial
millions of people in a safe and Markets: subscribe to the software and access
solutions for more than 650,000 small and medium
agile way—it took an average of it through the web or manufacturer
entrepreneurs, has selected IBM Cloud to move part • Brazil, Mexico, Chile and Colombia,
just 2.4 seconds to answers APIs.
of its workloads to cloud. Operating in the local which together represent almost 90% of
users' requests—while helping
market since 2012, Stone recently chose IBM Cloud the regional market.
prevent further crowding at
due to the flexibility and security.
hospitals.

97
Solar Energy
Asia
Asia

98
Solar Energy (Asia) Key trends Revenues Costs
• Asia contributes to 60% of new • 50% of the top 10 solar companies • Cost have dropped by 83% over the
installed solar capacity. are in China with revenue totaling last decade expected to drop by a
• Process optimization has resulted in up $11 billion. further 50% by 2030.
Overview to 30% year on year reduction since • Solar global energy capacity is • OPEX has declined by about 50%
• Solar energy also known as 2019 and continues to offer the rapidly growing up to 580GW with since 2010 but slower than CAPEX
solar photovoltaics (PV) uses greatest cost reduction. 16% commissioned in 2019 alone. (by 40 pp) .
scattered sunlight to create • Investments in the sector have • Global solar demand has grown 14 • China and India are the cheapest
electricity. The increased increased to $ 84B USD billion, 26% of fold since 2010. producers of solar modules.
efficiency and reduced cost global energy investment.
of PV utility scale projects • Economies of scale have been achieved
by 79% from 2009 has led to across value chain. China produces
the growth of the industry, 96% of the global market of ingots and
wafers.
with modules seeing a
reduction of up to 90% in the • Geopolitical risk arise from the tariff
war wit the U.S one of the words
same time.
largest buyer of solar raw materials
and components.
• China is the largest player in
the solar PV with 90% of the
market and the single largest
consumer of solar power at
254 GW installed capacity.
Value chain

Wafer, doping n &

Panel, adding
p type [40-50% of Cell, screen Module, string
Raw materials, Ingots, casting balance of
cost], this process printing and cells together
polysilicon crystal process forms systems to
has been targeted encapsulant [10% [30% of cost for
manufacturing blocks modules during
for cost of cost] module materials]
installation
reductions.

99
Solar Energy Competitors2 Customers Suppliers

(Asia) Rank
1
Countries Capacity Key Players
China 175 GW Longi, Jinko
• Marketing Channels: Direct (Email, Print
Media), Digital (Social media, websites),
Parts

Solar
Materials

Polysilicon,
Key Suppliers3

Jinko Solar (China),

ads, site visits Cells Solar glass, Trina (China), Canadian
Coronavirus impact1 2 Japan 55.5 GW PV Dev’t Partners, Vena
PV modules Solar (Canada)
3 India 27 GW Tata Solar, Vikram, Loom
Impacts of COVID-19 Ave. Size
Nature of Offtaker4 Electro Inverters, Fronius (Austria), SMA
4 S. Korea 7.8 GW SK E&S of Project nics Wires, (Germany), Sungrow
• Short term reduction in overall 5 Thailand 2.7 GW EGAT Transformers (China)
power demand which resulted
Chemic Coatings, DuPont (USA),
to a decrease in Solar Energy 50-
als laminates Ferroglobal (USA), OCI
Competitive 100MW
Output by 18.5% of 64.8 TWh etc (Korea) Linde (Germany)
Landscape
to 52.8 TWh in Q4 2019 to Q1
Fragmented Utility
2020 at start of pandemic 10-49MW Companies • Key suppliers: most comes from
- Highly competitive Large
Corporates China and EU
• Sharp fall of 13% yoy in 2020 to without dominant
10.1 GW in newly installed players >10MW Rooftop Rural Off- • Order size: Take or pay– has
Portfolios Grid
Solar PV capacity due to minimum energy to take ; take and
bottlenecks in the supply chain Key Factors pay – no minimum energy
(slowdown in manufacturing of • Rising environmental concerns
Solar PV) • Incentives and tax benefits for solar
panel installation;
Solutions/Plans of Action • Lower costs of panel production
• As economies started
recovering, solar energy‘s Similar industries Key risks Media
installed capacity in China
• Wind – energy source is also free • Political– Delay inclearances and • adb.org – renewable energy;
increased by 17.3 per cent in
and causes no pollution but only approval for the plants. They can mordorintelligence.com;
2020 which resulted to an
available in areas with strong steady also take back subsidies given rolandberger.com’
increase in output of 15% yoy
winds initially. greenrhinoenergy.com
• PV manufacturers in Asia • Geothermal - energy source is also • Financial – Difficulty to raise initial
increased capacity by 34% yoy free and causes no pollution but funding; volatility in interest rates
in 2021 to manage the only in locations with geothermal • Technical – Durability of
bottleneck and support source (ie. Volcanoes) panels/equipment; ability to adapt
expected growth in capacity. to innovation
China gave subsidies to
manufacturers to supply the
increasing demand in Solar PVs.

100
 Public
Transportation
Asia

101
Public Key trends Revenues Costs
• By 2024, public transportation will be much more • Public transportation revenue in Asia is • An estimation of $600 billion required annually to
Transportation: tech-led, with the introduction of mobile ticketing expected to show an annual growth rate develop the transport sector in Asia, with almost
and other smartphone-operated technologies to (CAGR 2021-2025) of 4.17%, resulting in a 80% of transportation infrastructure funding is from
Asia (flexible) facilitate the daily commute, combined with the use
of big data to optimize vehicle dispatch, routes and
projected market volume of US$88,853
millions by 2025)
the public sector.7
• Operation of public transport can be covered by fare
schedules, will lead to a highly automated system.2
Overview • On average an estimate of more than 30% of people3
• In the Public Transportation segment, the
number of users is expected to amount to
box revenue, earmarking sales and property taxes,
capturing increases in land value and property
• Revenue in public who previously relied on public transport might 2,748.6 m users by 2025. development, and revenue from road user chargers
switch to an alternative travel mode which offers • The average revenue per user (ARPU) is and parking charges which can be earmarked for
transportation segment is them the least risk of infection during the interim improving public transport operations.8
expected to amount to US$31.26.
projected to reach US$ period of the COVID-19 pandemic.”4
• In the Public Transportation segment, 20% of • Both the CAPEX and OPEX of public transportation
75,472 millions in 2021. • Research shows more than 60% of young workers total revenue will be generated through are high, which often exceeds the immediate fiscal
want to reduce their carbon footprint. They also online sales by 2025. capacities of most cities in developing countries. 7
prefer commuting at least partially by public Asia accounts for two-thirds of the spending on
• Revenue streams includes fares, commercial
transport.4 construction: for example, Beijing, Kuala Lumpur,
income, tools & congestion charges, payroll
• “ China and India are forecasted to welcome the Shenzhen, and Singapore are all building at least one
tax/business rates, dedicated local taxes,
Top 2 Countries in Asia for highest growth in their respective heavy duty transit business rates, subnational subsidies, central
rail project with a value of more than $5 billion. 10
bus markets between now and 2022”5 The CAPEX for the development of public transit is
public transportation governments, etc. 9 •
estimated to $5million, which includes construction
• Asian-Pacific cities were at the forefront in terms of
revenue(US$) ridership; Tokyo’s metro system carries around 3.5 costs, whereas an additional $0.5 mil will be
billion passengers annually.5 incurred for additional operating costs such as
CHIINA transit shelters. 11
• The Asian cities of Seoul, Shenzhen, and Singapore,
US$ 27,082 millions for example, top the rankings for public-transport
affordability.6
JAPAN
US$ 13,063 millions
Value chain Development
finance
Build-Operate-Transfer Model(BOT) 12
institution
Lending
• Most large-scale projects such as public transportation require huge investments and the Operator
banks
partnership between government and private sector through the Build-Operate-
Transfer(BOT) scheme has become a popular strategy to provide the necessary
Top 2 countries in Asia for transportation.
Host
public transport user • With BOT, the private sector designs, finances, constructs and operates the facility and Government
Supplier

penetration(%) eventually, after a specified concession period, the ownership is transferred to the
government.
HONG KONG • The BOT system requires a facility to pay for itself on a commercial basis, through
79.2% implementation of the "'user-pays" principle and private investors take on the long-term risks
Concessionair
Sponsors/
of financing, developing, and managing an infrastructural facility based on potential Shareholders e
Contractor
TAIWAN commercial rewards.
67.0% • Common examples of public transportation achieved through BOT in Asia includes Bangkok
Mass Transit System(BTS)in Thailand, STAR LRT in Malaysia, Beijing Subway in China, and
Metro manila in Philippines.
102
Public Competitors Customers Suppliers
• E-scooters • 20% via online sales by 2025 • Governments
Transportation: • Bike Sharing • Penetration Rate 54.2% 2021, 60% by • Government transportation
Asia (flexible) • Ride-hailing 2025 Enterprises
• Taxis • Public-Private partnerships
Coronavirus impact • Car Rentals
Impacts of COVID-19 • Private Cars
• Decrease in demand due to • Informal Public Transit
lockdowns initially and later,
concerns for safety from virus
spread. Average decrease of
65% across Asian cities. The
lowest point was April/May
2020.
• Solution: implementation of
social distancing, mask
mandates, tracing apps,
temperature monitoring,
increased hygiene and
cleaning requirements for
public transit vehicles. This Similar industries Key risks Media
has driven an increase in • Airlines • Perceived safety post-covid • Statista.com
demand from it’s lowest point • Taxi’s • Decreased user base with WFH trend • Asean.org
by an average of 45%. • E-hailing and online education • Unescap.org
• Abd.org

Implications of Demand ⬇️
• Decrease in accessibility
• Decline in urban development
• Increase unemployment
• Increased air pollution

103
Video Games
Asia

104
Entertainment - Key trends Revenues Costs
• As seen in Overview, Mobile & Online • Revenue from games can be one- • Video Game companies incur significant
Video Games segments have exceeded Download & time, in-game purchases or amount of variable costs (VC). It
Physically Sold. Better hardware & subscriptions constitutes ~30% of sales.5
streaming speed have made this possible • Revenue in Asia is projected to • For one-time purchase games, VC include
Overview • As VR/AR tech becomes accessible, a new reach ~US$90b in 2021 which is Product costs (75%); and Royalties,
breed of games has surfaced; Metaverse almost 60% of global market share of amortization & IP licenses (25%). For games
• The video game industry is being one of the most notable. The global US$160b4 with in-game purchases, VC include Game
one that develops, markets, market size for AR/VR gaming is forecast • The revenue streams come from the operations & distribution costs (90%); and
operates, and monetizes to reach $11b by 2026 (CAGR 18.5%)2 production and distribution of Royalties, amortization & IP (10%)
video games • Esports in Asia generated US $543.8 million hardware, e.g. consoles; and – Product costs are manufacturing,
in revenue in 2020, accounting for more software, i.e. the actual games and warehousing and distribution costs of
• Gaming is not restricted by than 54% of the nearly US $1 Billion-dollar in-game purchases the physical copies
geography and the players in global esports market.3 This does not – Game ops & distribution are customer
the gaming industry have to include the long-term marketing impact service, server, platform fees, costs for
compete globally for wallet towards video games in general esports activities
share • Fixed Expenses include Product
development, Sales & Marketing, G&A. It
• The industry can be broadly represents ~40% of sales.
segmented into the
following:1

Value chain
• The value chain has changed dramatically, with
middlemen removed. The typical value chain has: Mobile Games Developers / Distributors / Consumers
Publishers App Stores
– Developers/Publishers, e.g. Tencent Games
[70% of sales]
– Distributors, e.g. App Stores or Platforms, e.g. Online Games
PlayStation [30% of sales] Developers /
Platforms Consumers
Publishers
– Consumers
• For a game that costs $10, Distributors / Platforms
earn $3 and the Developers/Publishers make $7.6
105
Entertainment - Competitors Customers Suppliers
• Market share of key players in 2020 • Segments by console: • Production and Development
Video Games (by Revenue) – Mobile Gamers – Developers
– PC Gamers – Voice and motion capture actors
– Console Gamers – Music
Coronavirus impact • Segments by connectivity: – Licensing
• Demand for games soared as – Online Gamers • Marketing and Promotions
many people globally are at – Offline Gamer – Online ads
home and unable to work. In
• Distribution Channels – TV ads
China, the revenue was
– Physical stores • Manufacturing and Distribution
roughly 30% higher in Q1
• Publishers need to succeed in – Digital stores (in 2020, 91% digital) – Steam, App store
2020 than Q1 20191
Product, Price (freemium games are
– Others
• Supply is affected for two often more successful), and
Promotion (online game needs a • Operation
reasons:
critical mass) – Server
– Physical trade events and • Place (choosing the right platform)
expo for the industry can matter less, but if there is a
were cancelled or new platform, the early-bird
postponed; small publishers can secure the first-
developers had to delay mover advantage
or cancel projects. To
mitigate, the organizers Similar industries Key risks
have switched to fully • Movie / Animation industry: • Gaming is rife with unexpected project
online format in 2021 – Provides entertainment and studio failures; companies need to
predict if players will like the game but
– Console production is – Similar value chain:
worse, as games take from months to
scaled back as supply of Development & Production →
years to develop. Rovio hit success with
hardware components is Distribution → Consumer
Angry Birds after 51 games failed
affected – Upfront investment required to
• Low barriers to entry, a player from USA
produce
can rob shares from a Japanese player
– Digital disruption (Download /
• Difficult to differentiate. The gaming
physical DVD’s to online
market is highly saturated and
streaming)
fragmented with most games fitting in a
few regular categories
106
Private Equity
APAC Region

107
Private Equity Key trends Revenues Costs
Market Trend • Two main sources of revenue: • Blackstone as an example (2020); Total
(APAC Region) • In APAC region, Asset Under Management – Recurring revenue is the Expense = USD 3.48bn
(AUM) is expected to hit USD 6T by 2025, management fees, which is 1-3% • Compensation (55% of total expenses)
Overview which means about $60bn in annual of committed capital. (In 2020, (Variable)
• Private Equity invests in companies management fees. Blackstone PE’s mgmt fee is • Net Realized Performance Compensation
acquiring majority or substantial Social & Technological $1.3bn) (19.6%) (Variable)
minority ownership of the firm.1 • Technology remain the dominant sector for – One-time revenue is the • General & Administrative (20% of total
• The investment returns are strong APAC funds at 42% of deal value.2 COVID- performance fee from exited expenses) (Fixed)
and less correlated with the public 19 has accelerated the pace of disruption; investments, which is usually 10-
• Interest Expense (5% of total expenses)
market indices.1 accelerating number of digital products 30% of profits. (Profit = Initial
(Fixed)
• However, investments are illiquid and services.3 Key tech sector is digital Investment - Exit Value) (In
payments with CAGR of 16% 2020 to 2025 2020, Blackstone PE’s • Fund Expenses(0.4% of total expenses)
and have long holding period. PE
uses Leveraged Buyouts (LBO) as an respectively.6 performance fee is about (Fixed)
investment strategy to amplify Environmental $0.6bn)
returns. On average, holding period • From 2014-2018, ESG investment grew at
tends to be 3 - 7 years with ROI
14% CAGR from $18.3T to $30.7T. With
between 2x-4x multiple on money
(MoM) or between 20-30% internal more regulators viewing ESG reporting as a
rate of return (IRR).1 priority, ESG market is expected to hit
$53T by 2025.
• (Graph 1): The industry can be
broadly segmented into five main
strategy and across different APAC
region as shown:2
Value chain
• Funds from LP: Depending on the firm size, the average yearly new funds from LP fluctuate heavily between 8-40% of initial AUM.
• Deal Execution: Largely dependent on the industry, valuation of firm, comparables and etc. In 2020, APAC’s average deal size is USD $317m.
• Exit investments: Similarly, exit value highly dependent on similar factors. In 2020, exit value is around USD $175m.

• (Graph 2): The industry can also be

segmented by sector:2

Deal Sourcing Deal Execution Monitoring

Funds from LP Due Diligence Exit Investments
(Entry) Investments

108
Private Equity Competitors Customers Suppliers
• Big Banks, regional / local PE, • Segmentation and relevant splits Who are the Suppliers?
Corporate investors • The suppliers here are the startups
• 85% of PE funds say that rivalry for themselves.
Coronavirus impact the best deals has increased in their • The ability of startups to command a
• Cautious Sentiment Dominates primary market high price for their equity depends
Asian PE Market (Gobally as well) upon the booming sectors and
• PE and VC entry value in the upcoming trends
APAC region rose by 31%, from
$23.7bn in the first three months
of the year to $31.2bn in the
second quarter.
• Bridge financing is the most
pressing requirement for
portfolio companies • Trends
– Technology was the dominant
• New opportunities to invest sector for Asia Pacific funds in Typical Deal Size -
across types of deal structures
2020, representing over 30% of • The average deal size was $122
are emerging as a result of
the total deal value. million, on par with the five-year
COVID-19.
– Sectors such as education, average
• Biggest challenge faced at the logistics, healthcare and
portfolio company level during • Investment value in India, the
technology saw strong demand second-largest market in Asia-
the pandemic - liquidity and as they benefited from structural
finance concerns (40%), impact Pacific, was 29% higher than in 2018
changes due to the pandemic. and 88% higher than the previous
on workforce (21%), and supply
chain and operational disruptions five-year average
(17%) Similar industries Key risks Media
• The pace of investment into Asia
• Family Office • Higher interest rates raising borrowing • Bloomberg, FT, WSJ
as compared with investments in
– Manages funds of accredited investors costs • Bain Capital, Mckinsey PE Reports
the United States or Europe, may
depend on how long “shelter in – Provide • Recession destroying asset value • Preqin, Pitchbook
place” restrictions for • Hedge Funds • Defaulting of investments due to tail-
investment professionals remain events
in each jurisdiction. A faster – Similar client pro
• Scandals, Frauds, Crisis damaging firm
recovery in Asia could lead to a • Standalone Real Estate Management Firms
value
larger amount of investments – Portfolio of Real Estates
being made there.
109
 Public
Healthcare
Europe

110
Public Healthcare Key trends Revenues Costs
• Public Healthcare is primarily • Public healthcare expenditure is split
Europe (core) • Notable development in the European public
healthcare focuses efforts to reduce costs funded by the Government through primarily between Public sector and
through reforms to rationalise provision of taxation. Private sector expenditure.
Overview hospital care. Thus, decrease in: • The three largest European • Of which Public sector expenditure
• Healthcare systems are organised – Number of hospital beds economies fund 7.98% (UK), 11.2% accounts on avg. 74% of total healthcare
and financed in different ways – Acute care admissions (Germany) and 11.2% (France) of expenditure. Per capita expenditure has
across the EU Member States, but – Length of stay (improved occupancy) their total GDP. EU avg. stands at increased by 50% among EU countries in
9.9%. the past 10 years.
universal access to quality – Sharp reduction of secondary care
healthcare, at an affordable cost institutions (hospital & clinics). • 80% of public healthcare financing is • Major breakdown of expenditure can be
comprised of two primary sources: classified into:
to both individuals and society at • Healthcare reforms heavily emphasise on cost
Government schemes (28.3%) and • Hospital care (38%), Ambulatory healthcare
large, is widely regarded as a basic reduction and process streamlining through
compulsory health insurance (25.5%) and Medical goods (17.6%).
need; moreover, this is one of the the use of technological innovation such as:
schemes (51.3%).
common values and principles of – Integrated models to consolidate primary,
EU health systems. community and home care.
– Open innovation platforms for healthcare
• Many European countries (all EU
data sharing.
members) offer their citizens
• COVID-19 highlighted health workers
European Health Insurance Card
shortages in many European countries (10
which provides insurance for million globally by 2030)
medical treatment insurance when
• Smoking, alcohol consumption, nutrition, lack
visiting other European countries.
of exercise, and obesity remains a high issue.
• WHO has listed 53 countries for • Pollution levels remain above WHO
the European region, and whilst guidelines.
the EU has no major
administrative responsibility in the Value chain
field of healthcare, the European
Commission’s Directorate-General
Public and
for Health and Consumers is private Government &
Payors Infrastructure & Healthcare
working to align national laws to insurance regulatory Patients
schemes ($) suppliers provider
form EU-wide laws. bodies
Provides funding via Set policy & (Network of) Provides
taxation and contribution treatment hospitals & clinics healthcare
coverage services

111
Public Healthcare Competitors Customers Suppliers
• Covid as an ongoing threat (such as Patients (B2C) Supplier
Europe (core) virus mutation) • By Income/ age group / chronic • Politicians / Lawmakers (driving
• Aging/Growing population poses a condition healthcare system setup)
Coronavirus impact major threat to European healthcare • Beware whether the market is • Payors (determining what is
• The Covid-19 pandemic has as it exacerbates the pressure reimbursed or out-of-pocket (much reimbursed)
revealed major flaws in the (demand) on the healthcare system higher price sensitivity) • Lobby Groups
European public healthcare • Antimicrobial resistance leading to • Producers (Pharma/Med Tech)
system by unravelling the lack of therapeutic options and Healthcare professionals (HCPs) (B2B)
huge labor shortage in ultimately more deaths (25,000 • Key Opinion Leaders (KOLs) (leading
deaths in EU/year) and higher Success Factors
healthcare specialists, experts in particular fields)
expenditures (€1.5 billion/ year) • Safe citizens
infrastructural inefficiencies • Doctors & nurses
• Shortage of five million skilled • Life span
and system incongruencies.
labour • Mortality rate
Examples include postponed
elective procedures which • Continued health inequalities across • Health coverage (utilisation)
Member States (9 year difference of • Cost affordability
led to bottlenecks (UK
life expectancy)
waiting list rose from 4.4m
to 5.0m in March 20211,2).
• Covid-19 has accelerated the
infamously analogue public
healthcare industry to
Similar industries Key risks Media
digitalise, where remote
patient consultations • Private healthcare (similar value chain, • Insufficient workforce (shortage of 10 • Eurostat (Statistics Explained)
increased by 6x in Europe.1 but more open to new treatments due to million globally by 2030), which could • Key Trends in European Hospitals
less constraints from payors) only be partially offset by AI as
• Overview of worldwide healthcare
healthcare has low automation
systems
potential (35% time spent on tasks)4
• Cybersecurity concerns due to
increasingly digitalized system & shared
data infrastructure
• Negligence & non-compliance risk for
telemedicine

112
 Wealth
Management
Europe

113
Wealth Management Key trends Revenues Costs
Fintech/Green Fintech shaping WM The business model is the basic setup with Major Cost Drivers
Europe • Technologies that improves and automates use regard to its target client segments, • The front office, including portfolio managers
of financial services to clients.Green Fintech distribution channels, client relationships, and product management, comprises the
Overview describes companies having positive impact on product offering, delivery model and other largest component of cost, approximately 30-
the environment. Projections for the size of elements relevant for value creation. 40% of revenue, and is a place to start reigning
• Wealth management is an
investment advisory service that global fintech hover near 500 billion US dollars There are four fundamental business models costs in.
combines other financial services to by 2025. differing along the dimensions "geographical • The back office is subject primarily to fixed
address the needs of affluent Crypto Assests footprint" and "depth of offering". costs. Information technology (IT) project
clients. • Total market capitalization of cryptocurrencies Global Wealth Managers and Local Private portfolios have been cut or put on hold, but
• With EUR 18 trillion of financial has hit new highs, exceeding $2TN in April Banks - can employ a fully client-centric this, may only be a short-term fix.
assets held by individuals, Europe 2021, up from under $50BN four years ago, as business model and generate higher growth
• Looking at compensation, from a wealth
represents one of the largest traditional institutional investors, attracted by rates, reflected in smaller declines in their
manager’s income statement, many
wealth management opportunities strong returns, low correlation and funds under management.
organizations targeted reductions in 2007-2008
in the world. institutionally suitable products, add another Global Integrated Banks - can achieve cost by cutting headcount and bonus pay. But as the
• Switzerland remains the undisputed tailwind to persistently strong retail trading advantages over Local Private Banks due to economy has improved, this has only increased
leader in global cross-border wealth activity and family office investments. economies of scale and scope, resulting in a demand for top performers. One study,
management. It not only profits ESG Focus superior return on equity (RoE). published in 2010, expected compensation to
from a strong know-how in wealth • The European Green Deal aims to make Europe Local Integrators - generate the least rise in 2010 by 10-15% in the United States and
management, access to the first climate-neutral continent by 2050. A growth, the highest CIR and the lowest RoE. 15-20% in Europe and Asia.
experienced bankers and attractive central element of the Green Deal is the These players need to consider carefully the Costs management Framework
regulations. European Green Deal Investment Plan, which is sustainability of their business model.
• Data collection addresses the symptoms –
• Switzerland is also at the forefront intended to unlock at least €1 trillion of The wealth Management Industry have identifying initial variances between current
when it comes to sustainable sustainable investments in the decade to 2030 different types of WM which can capture performance and industry benchmarks.
finance, fintech, digitization and to support the transition to climate neutrality. HNW and UHNW segments. These segments
is on the rise in Europe which acts another • Analysis phase - management will understand
crypto assets – some of the key Government Intervention
driver. the initial symptoms where variances are
trends in wealth management right
• Public deficits are expected to grow in the justifiable and where they represent real
now. Europe HNWI Population
European Union to 95 % of GDP by end 2021. systemic challenges that call for a closer look.
• Global wealth management is This will shape the future business cycle and • Action - highlights a number of cost-cutting
expected to grow from $1162.66 managers must evaluate consequences while tools depending on the root cause.
billion to $1263.34 billion in 2021 at developing different portfolio strategies.
compound annual growth rate Data Analysis
Action
(CAGR) of 8.7% Market is expected Collection “Why/
“How”
to reach $1755 billion in 2025 at a “What” Where”
CAGR of 9%.
• Western Europe was the second
Value chain
largest market after North America Risk and
Client Investment Research and Portfolio Trade
accounting 25% of the global wealth Accounting Reporting Compliance
Acquisition Planning Analytics Management processing
management market.

114
Wealth Management Competitors Customers Suppliers
• Traditional players: • Customers by financial assets: • Common strengths:
Europe – Specialised wealth managers: – Affluent/Retail: <1M€ – Size (economies of scale)
▪ Julius Baer, Pictet, LGT – High-Net-Worth-Individual – Org Set-up (universal vs pure
Coronavirus impact Group (HNWI): 1-15 M€ player)
• The global pandemic was – Wealth management divisions of – Ultra (UHNWI): >15 M€ – Brand
quickly followed by massive integrated banks:
• Customers by age: – Market presence
government and central-bank ▪ UBS, Credit Suisse, BNP
Paribas – 70% Baby boomers – Geographical focus
interventions and then market-
stimulating news of progress • New entrants: – 20% Generation X • Top performers:
toward a vaccine. Thus, assets – FinTech Startups – 10% Millenials – Smart pricing
under management for Western – Tech and ecommerce players • Customers pain points: – Sales Force effectiveness
Europe asset managers grew 5% – Higher pricing – Client Centricity
in 2020 to a record €25.2 • Global leadership in cross-border
financial center wealth (2020 – Long & complex processes – Digital advantage
trillion.
ranking): – Administrative procedures – Efficiency of processes
• Client retention achieved an – Switzerland: $2.4 Tn, CAGR 3% – Inaccurate reporting • Data & Analytics: Web-crawling, NLP
all-time high in 2020 rising to
– HongKong: $2.1 Tn, CAGR 9% • Marketing channels: digital media processing, best time to reach,
94.6% in 2020. Advisors are
– Singapore: $1.2 Tn, CAGR 9% marketing, brand, premium content speech recognition…
struggling to find growth from
new relationships. • *CAGR 2020-2025 prelaunch... • Ethnographic Research: Study the
behavior of the clients in real-life
• As advisors and clients become environment
more comfortable with
videoconferencing, new
opportunities have emerged:
firms can rethink about real Similar industries Key risks Media
estate, and can match assets • Asset Management which is a subset of • Tightened regulations (ESG): €28 trillion • Bloomberg
managers with different wealth management. It focuses on of capital reallocation in Europe over
cohorts of advisors. Advisors • Financial Times
investments/assets and risk-return the next 30 years to reach 1.5 degree
specialized by client types are • WealthManagement.Com
analysis. climate target.
becoming global.
• Demographic changes: the next gen has
longer investment horizons, a greater
appetite for risk, and a desire for
positive societal impact and solid
returns.

115
XR
Asia

116
XR (core) Key trends Revenues Costs
• According to BCG, XR market could • Global was $16 bn in 2020, up 19% • Main cost drivers for devices is R&D
reach $296 bn by 2024 from 2018 (could get as high as ~2.5M USD); for
• Drivers: content availability, software, development is the top
Overview 296,9 hardware & software costs, ubiquity one (~300k USD), followed by
124,4 of mobile devices… maintenance (~200k USD).
• XR industry consists of AR 58,7
30,7 Streams: sales of
(Augmented Reality), VR •
(Virtual Reality) and MR products/subscriptions, added
(Mixed Reality). AR and MR 2021 2022 2023 2024 features or in-app purchase, product
are sometimes referred to placements…
together. • Positive trends for XR industries:
development of smart cities, of 5G,
• Regarding products, they can increasing usage for various trainings
be classified based on device (particularly medical and
manufacturing), promise of increase in
type and technology. The
productivity
most popular in 2020 were
• In a survey, 56% of respondents said
VR standalone HMD (44% of
they intend to develop XR initiatives in
shipments), followed by VR Education, 44% on architecture/
tethered HMD (41%) engineering, 42% on healthcare
• Main usages by enterprises
are marketing, product Value chain
demos & training; for
consumers, it is gaming and Hardware OS & Development tools
content consumption. Applications Content
Component Terminal OS SDK

End Users Sales & Distribution

117
XR (flexible) Competitors Customers Suppliers
• Regarding VR headset, leaders are Oculus • Enterprise(industrial, architectural, • Main supplies are hardware (sensors,
Rift (45% share), HTC Vice (41%). Top XR manufacturing…) and semi-conductors…), software (SDK,
device shipper is Oculus (75%) consumers(home entertainment, imaging solutions, content
Coronavirus impact gaming, communication and platforms…) and services(cloud
6% Oculus design…) services, integration services…)
5%
• It mainly slowed the DPVR • Asia Pacific is the second biggest • Top AR platform providers are Apple
7% 4%
adoption because of budget market(40.9% market share) behind and Google with 95% market share,
Sony
constraints, with budget the US, but the fastest growing one, we also have Amazon and Facebook
being allocated to survival Pico driven by innovation efforts there • Main headset graphic cards suppliers
initiatives in companies Others (~45% patents worldwide, US ~30%) are Nvidia(90%) and AMD(8%),
• Sectors forecasted to be most headset processor suppliers are
• As an adaptation measure,
disrupted by XR: healthcare, Intel(85%) and AMD(15%)
because of lack of physical education, workforce training…
interactions, and an increase • Players for Smartphone VR are Samsung
of digital commerce, we saw and Carl Zeiss; AR Smart Glasses, Google
an increased adoption by and Vuzix; Enhanced AR, Microsoft, ODG.
companies to keep customer In healthcare XR, Microsoft, Alphabet,
Artificial Life as main players
engagement and brand
experience; we saw an
increasing deployment of VR Similar industries Key risks Media
to remotely visualize and
assess patients remotely, it • … • Barriers to business adoption( lack • Statista
was increasingly used to of understanding of benefits, lack of • International Data Corporation
proof of ROI, Cost),
train medical staff, for • XRA
consumer(comfort & usability, field
warehousing and inventory
of view, eye tracking)
management.
• On a macro level: lack of talent to
meet the demand growth, hardware
and software experience, content
availability, security and privacy
concerns

118
Autonomous
Vehicles
Asia

119
Autonomous Key trends Revenues Costs
• Quantum Computing’s economic • By 2040, 33 M fully autonomy • Capital intensive industry - CAPEX
Vehicles (Asia) impact on AV estimated at $2 billion to vehicles sold globally heavy
$3 billion, by 2030 • Advanced driver-assistance systems • Main expenditures relate to
Overview • E-commerce boom drives demand for (ADAS) technology could double by components, labour and
autonomous vehicles in logistics and 2021, reaching $35 billion in revenue manufacturing (up to 81% in the
• Large autonomous driving delivery • Add ons: New software, etc., structure of expenditures for COGS),
patents hold by Toyota (626) • Logistics companies started using truck sales, general and administrative
AVs for last mile delivery & transport - (up to 13% of revenue),
• Most funded autonomous Mercedes Arocs, Plus.AI, FedEx & Nuro technological leadership (R&D
vehicles startup - Argo AI - spending is up to 7% of revenue).
• Technology and regulatory issues if
US$ 3.63B solved, up to 15% new cars sold in 2030 • High-cost components - sensors,
could be Level 5 radars, communication devices, and
• Argo Competitors are Aurora, battery systems.
• 23% people feel comfortable driving
ZOOX, Waymo, Nuro, Cruise • 22% of 54 AV manufacturers believe
autonomous vehicles
& Pony AI – All U.S. start ups component costs are too high.

Level Degree of automation Requirement of human driver Market status

Function specific
Level 1 Drivers still control most of the functions Already exists in the market
automation
Partially relieved to control specific
Level 2 Combined function Came to market in 2013
functions
Need drivers to intervene when the Expected to hit the market by
Level 3 Limited self-driving
systems fail 2021
Level 4 Full self-driving Driver is not expected to take control Expected from 2025 onwards
No timeline given by any
Level 5 Full autonomy Driver not required
automaker

Value chain

Warehousing
Process and Vehicle Service
R&D Raw Materials and Dealerships After sales
Manufacturing Assembly Providers
Distribution

120
Autonomous Competitors Customers Suppliers
• Regarding VR headset, leaders are Oculus • Share of customers willing to use • Bosch - Leading autonomous vehicle
Vehicles (Asia) Rift (45% share), HTC Vice (41%). Top XR fully automated car – 44% technology supplier invested over 6B
device shipper is Oculus (75%) • Commercial buyers euros in R&D
Coronavirus impact • Players for Smartphone VR are Samsung • Outsourced manufacturing
– Logistics, Public transport,
and Carl Zeiss; AR Smart Glasses, Google Industrial usage, Taxi companies • Semi finished products: Steel,
• Regulatory uncertainty
and Vuzix; Enhanced AR, Microsoft, ODG. leather, glass…
increase • Private ownership
In healthcare XR, Microsoft, Alphabet,
• Marketing channels: • Tech supplier: AI/ML software, AV
• AV testing may be put off Artificial Life as main players
system suppliers
– Ads, Social Media, Test drive
due to investors scaling back • Service providers: Internet
funding to manage cash for – Bid participation, site visit
providers, charging stations, map
operating activities – like • Order size providers, add-ons.
commercializing and scaling – B2C: 1 • Parts supplier: sensors, radars,
existing technologies – B2B: 1-100+ cameras, batteries, accessories/
• Remote working trend • Distribution Channels: electric cables
reducing demand – Showroom, D2C • Order size: Related to demand,
– Customization advanced orders

Similar industries Key risks Media

• Autonomous trains, boats • Cyber attacks on software and taken • Statista
control by hackers • International Data Corporation
• Decline in private ownerships • XRA
• Safety risk due to machine error
• Lack of self-driving Regulations
• Geopolitical issues creating stoppage
in materials supply
• Hijacking vehicle access and controls
• Software failure
• Complex, real life driving conditions
• Shortage in semiconductors, batteries,
and tech systems
• Supply chain disruption due to lack in
demand forecasting
121
Life Insurance
Asia

122
Life Insurance Key trends Revenues Costs
• The Traditional approach of selling life • Projected % increase in Life • Cost in Life Insurance Industry is
(Asia) insurance policies will be changed in Insurance premium growth mainly driven by few elements
the future worldwide between 2019 and 2023
Overview • In next 3 years 61% of Insurers will Life Insurance Cost
generate over 30% of business from L-SHAPE (Life Premium Growth) Breakdown
• Life Insurance market in Asia
service-based offerings
is booming 10,00%
• 51% of industry feel that China will
• Projected growth of Life have the fastest growth in coming 3 29%
25%
Insurance written premium 5,00%
years
from US$1.2 trillion in 2019
• By 2024 33% premium volume will
to US$1.5 trillion in 2023 come from new propositions
0,00%
2019 2020 2021 2022
20%
• 95% customers expect an increase in -5,00%
Asia-Pacific Life the usage of Advanced Data Analytics 26%
Insurance Market in next 3 Years
-10,00%
2 • 73% Industry expert believe that M&A Product Development & Sales
APAC Europe
1,5 6,1%10,0% will drive minimum 50% of industry Operations
5,3% 5,8% Global North America
2,4% 5,0% growth in coming 5 years Support Functions
1 -0,1%
0,0% Information Technology
0,5 -5,0% Revenue sources of Life Insurance industry are
0 -10,0% • Premiums paid by the insured
2019 2020 2021 2022 2023 • Interest earnings from the investment of
Gross Written Premium (US$ Trillion) premiums
Annual Growth

Value chain
• Projected compound annual
growth rate (CAGR) of
4.9%from 2019 to 2023 Product Sales & New Business Customer
Claims Payments
• Mature markets: Japan, Management Distribution Underwriting Service
South Korea, Taiwan
• Developing markets: India,
China, Malaysia etc.

123
Life Insurance Threats to the industry Customers Suppliers
• Changing consumer behavior, life • Two type of customer: Individual & • Insurance policies mainly sold via
(Asia) insurance is linked to both home Commercial buyers. Individual largest Insurance brokers/agents, and they
ownership and starting families which are sector, key drivers: are the key suppliers.
Coronavirus impact on the decline – Homeownership, life insurance is a • Key suppliers:
• The growing concern over the privacy of prerequisite for being approved for – Independent Agents –They sell
• As a result of COVID 19 stock customer data, technology has increased long term home finance. policies of many insurance
prices of life insurance has accuracy and customizability of products, – Family (marriage & children), leaving companies.
reduced drastically across leading to regulatory encroachment i.e., dependents with no source of income • Captive Agents – They work for one
globe. California Consumer Privacy Act of 2018
• Marketing channels: specific insurance company
• The fast-changing digital space, systems,
– Ads, Social Media, Cold Calling & Email • Order size: Mainly single while
and technologies these are creating
• Order size purchased by individual, Bulk when
business model disruptions i.e., Insurtech
purchased by a company
like Halos, Lazarus AI & Relay – B2C: 1
– B2B: 1-50+
• Distribution Channels:
– Life Insurance Company Office/ Online
/ Selling via Intermediaries

Similar industries Key risks Media

• Key Factors helpful to cope • Reinsurance is like Life Insurance • Risk of poor investment performance can • Important Channels to find about
up with the impact of COVID however re-insurance cover risks impact the profitability directly. Life Insurance industry
19 which cannot be covered by any one • Risk which can occur as a result of – Online Surfing
company macroeconomic factors and geopolitical
– Operational resilience - – Publication by consulting and
• Difference in value of the order situations. insurance companies
Actions through the lens
of priorities, timeframe • Highly intense competition can impact the
and accountability profitability.
• Exposure to climate risk such as
– Crisis Management - earthquakes, hurricanes etc.
Three main stages to • Government and Regulatory policy changes
follow – respond, recover can impact the business model and
and thrive profitability.
– Digital Consumer • Litigious legal system can result in
Servicing unpredictable claims settlements for the
cases in dispute.
124
Cleantech
Asia

125
Cleantech (Asia) Key trends Revenues Costs
Political and Legal • Customer awareness for the importance of • High current CAPEX associated with
• Paris agreement: Limit global warming sustainability is increasing (See key trends) Cleantech
to well below 2, preferably to 1.5 • Sustainability as a competitive advantage • However, on the other side
Overview degrees Celsius, compared to pre- in many industries automation & AI solutions are
• Clean technology, in short industrial levels. • Internal: Attracting and retaining top driving down OPEX in the clean
cleantech, is any process, • Green deal: No net emissions of talent technology sector
product, or service that reduces greenhouse gases by 2050 • External: Increasing revenue streams • With the rapid scaling of these
negative environmental impacts Economic through their “cleaner” services & technologies, cost declines can
• ESG agenda by corporations & products range between 65-90%
Benefits
investments
• Through significant energy
Social
efficiency improvements
• Veganism as a lifestyle
• Sustainable use of resources
• Electric Vehicles over Diesel/Petrol
• Environmental protection • Railways > Airways (Within Europe)
activities.
• Local produce > Global produce
Segments: Technology
• Agriculture (SCPI, CA, Permaculture)
2500 • Transport
2000 • Sustainable cities/Infrastructure?
1500
bn €

Environmental
1000
500
• Extreme weathers (Floods & Heatwave)
0
Value chain
Cleantech is a developing industry which is on the rise:
Global Market Growth
(2020-2028): Raw Material Parts Marketing &
R&D & Design Production Transportation
supply procurement Service
60
41,62
USD Billion

40 Costs High High High High Medium Medium

20 9,57
0
2020 2028
126
Cleantech (Asia) Competitors Stakeholders Suppliers
• Competition intensity: The market for cleantech is • Insurance policies mainly sold via
consolidated by major companies striving to Incubators/ User Insurance brokers/agents, and they are
Parts and suppliers
maintain their position by focusing on accelerators and service entities the key suppliers.
providers
collaborations and establishing partnerships to • Key suppliers:
Coronavirus impact favor the market's growth in the next years.
– Independent Agents –They sell
Key players: Unions & Research & policies of many insurance
Specialists and
How is the industry affected? associations influencers training companies.
• Captive Agents – They work for one
• Initial curbing of investments specific insurance company
& subsidies by VC and govts Geographic Distribution of
R&D services • Order size: Mainly single while purchased
which threatened the Cleantech Index Companies Private/pub
Government by individual, Bulk when purchased by a
lic funding
expansion but later picked USA company
up by shattering previous
Europe & Israel
investment records (€7bil
Cleantech
investment to original target Asia (Japan, companies
Singapore, China)
€4.7 Bil)
How is it dealing with impact?
• European Green Deal Funding & Startups Interesting Startups Key risks
triggered by COVID-19-
• Overall, venture investment around sustainability is • Northvolt (Sweden): Lithium-ion battery startup • Lack of political support and consensus
European leaders far lower than private equity, a much bigger asset • H2GO Power (UK): Storage for hydrogen • Lack of funding for Cleantech startups
class in which stakeholders are upping their
• Vässla (Sweden): Battery-powered micromobility
allocations to funds that follow stepped-up
solutions such as scooters, electric bikes and mopeds
environmental, social and governance (ESG)
standards • Arrival (UK): Zero-emission public transport
manufacturer
• Private equity investment in renewables has been
• Einride (Sweden): Electric trucks
especially strong, eclipsing fossil fuel asset funding Media
• However, startups do have a role to play in • Bulb (UK): Renewable energy from solar, wind and
developing and scaling the technologies and hydropower • Bloomberg New Energy Finance
business models that could help wean us off our • OVO Energy (UK): 100% renewable energy for domestic • https://www.cleantech.com/indexes/the
fossil fuel-guzzling habits energy suppliers, serving households and businesses. -cleantech-index-ctius/
• Outlook: In the climate change context, there is • Exeger (Sweden): Flexible solar cell technology, which
still a blue ocean for startups to play a more leading can be used to power gadgets (e.g. self-charging bike
role in Cleantech helmet with a safety light and wireless headphones)
• X Shore (Sweden): Electrify the leisure boat industry
• Zeroavia (UK): Hydrogen airplane engine developer

127
Cryptocurrency
Asia

128
Cryptocurrency Key trends Revenues Costs
• Introduction of Tax Regulations - • Drivers: Mainstream adoption - • Rising electricity costs
(core)(Asia) increased adoption of cryptocurrency government approval, giving legal • Different energy consumption as
from different countries across the status, approval by business big mining rises
Overview world. marketplaces to use as fiat
• Rising infrastructure costs (scarcity
• Growth of Stablecoins - dollar pegged currency.
resources, high demand for
• Cryptocurrency is known as stable coins circulation increased by • Revenue streams: Profits generated microchips)
virtual currency. It is a form 500% selling chips, software,
of currency that exists • Decentralized Financial Services - infrastructure, initial coin offerings
digitally only and has no acceleration of digital storage, main
central issuing or regulating growth driver in future
authority above. It uses
blockchain technology to CAGR: 12.8 %
6
authenticate the from 2021 to 2030 4,94
transactions. There are more
than 4,000 cryptocurrencies 4
in existence as of January
2021. 2 1,49

0
2020 2030

market size ($ bln)

Value chain
• Mining – Storage & Exchange – Payments
• Mining – receiving newly minted cryptoassets as a reward for processing transaction
• Storage & Exchange – enabling secure transaction, exchange of cryptoassets
• Payments – facilitating the use of cryptoassets for all types of payments.

129
Cryptocurrency Competitors Customers Suppliers
• The cryptocurrency market is segmented • Used in booking hotels in Expedia • Hardware providers
(core)(Asia) on the basis of offering, process, type, • Used in shopping for furniture on • Software providers (wallet
end user and region. Overstock, buying Xbox games, buying providers, mining, redistributing
Coronavirus impact • Offering: it is fragmented into hardware, flight tickets. etc.)
and software. Process: bifurcated into • Countries where it is most popular: • Infrastructure, cooling system,
∙ Prices of most currency went mining and transaction Nigeria, Vietnam, Philippines, Turkey. electricity providers
down at the beginning. • Type: segmented into bitcoin (BTC),
Bitcoin price had gone down ethereum (ETH) 5% 4%
6%
to half in March 2020, • Countries: in Japan, USA, Canada, 32%
7%
alleviating as low as $ 3,780. Australia recognized. In China, Iceland is
9%
∙ Since then, most prohibited.
cryptocurrency gained • Key players: Advanced Micro Devices Inc., 11%
popularity and considered as BitFury Group Limited, BTL Group Ltd., 21%
solid investment against Coincheck Inc., Intel Corporation, Ledger
SAS, NVIDIA Corporation, Ripple, Xilinx 16%
raising inflation.
Inc., and Xapo Holdings Limited
16% 20%

Similar industries Key risks Media

• Stock market, traditional derivative • Spoofing of payment information • Controversial
market • Buying/selling of insecure ICOs
• Faking of payment gateways
• Using incorrect user address
• Phishing of websites, ransomware, stolen
token

130
FMCG: Household
Products
Asia

131
FMCG: Household Key trends Revenues Costs
• Demand for premium FMCG goods • Revenue drivers: Increasing • Main expenditures are connected
Products has grown by 22% amidst increasing disposable income, consumer with variable costs (up to 72%) with
urbanization, higher GDP growth & demand and easy availability of cumulative expenditure for direct
Overview changing lifestyle. products. material (30%), indirect material &
• 62% of Asians prefer convenient • Revenue streams: Sale of products advertising (15%), margin/
• Fast Moving Consumer Goods
store location to shop amidst the & services, earnings from interest salary(13%), packaging costs (10%)
(FMCG) is the 4th largest sector
lockdown and restricted movement. and strategic alliances. and others.
with food & beverages
• 69% of Asian consumers would • Seasonal Trend: Highest orders are • Industry with high ongoing costs -
accounting for major portion
switch to an eco-friendly brand with recorded during festive sales. OPEX heavy.
followed by personal care,
the same price and quality while
tobacco and household.
72% find naturally-produced
• FMCGs have low profit margins products are more important to
and high-volume sales as they are them.
purchased frequently, consumed • Creation of a number of new
rapidly, priced low, and are sold ‘microchannels’for instance, the
in large quantities. adoption of apps such as DoorDash
• They also have a high turnover and Instacart and models such as
when they're on the shelf at the “buy online, pick up in store” has
store. spiked.

Value chain

Categories: Product Procurement & Manufacturing & Sales & Consumer

• Food & Beverages Development Logistics Operations Distribution Management
• Cosmetics & Toiletries
• Office supplies & Stationery • Proto • Fleet Maintenance • Factory/Building • Marketing • Customer Service
development & • Logistics Transfer • Machinery • Transportation • Acquisition
• Medicines among others
testing phase • Import/export • Manpower/Labor • Warehouse & • Demand
• Customer Survey • Inventory Distribution Monitoring
management operations

Authors: Jacob Wang (C1), Lenka Eleková (C1), Avi Kumar (C1) 132
FMCG: Household Competitors Customers Suppliers
Key Players: Two types of customers: Raw Material Suppliers:
Products • Nestlé, Switzerland • Commercial Buyers: Buy in bulk • Agricultural ingredients.
Coronavirus impact • Procter & Gamble, US for industrial use. • Packaging: glass, aluminum, PET.
• PepsiCo, US • Individuals/Households: Buy for • Outsourcing from China.
• The Covid-19 crisis has created a personal use or for particular needs.
shift in priorities for consumer • Unilever, UK/Netherlands Trends:
goods businesses with surge in e- Trends: • Emergence of bigger & fewer
commerce sales, growing • The competition for market share is • Healthy lifestyle & sustainability are suppliers
preference for trusted brands, high, leading companies to focus becoming an important consumer • Reliance on overseas countries
decline in discretionary spending, preference.
heavily on packaging not only to • Shortages of natural resources
larger basket but reduced shopping • Propensity towards convenience,
frequency and sustainability.
attract customers, but also to Order Size: Mainly in bulks
preserve the shelf life and integrity digitalization & customer
• To sustain the core business, cross experience.
functional demand centers with KPI of the product.
tracking and elastic digital • Hence within the FMCG industry, the Marketing channels:
workplace task force were set up. brands succeed using innovation, • Ads, Social Media, word of mouth
• Reallocation of resources, localization, value-oriented Order size
acceleration to data driven products, better customer targeting • B2C: 1-15
operating model along with and product diversification.
enabling the shift in product • B2B: 1-100+
portfolio by flexible manufacturing Distribution Channels:
& logistics helped to reset and • General/ Modern Trade
renew the way of working in the • Online
post covid era.

Similar industries Key risks Media

• Fast Moving Consumer Fashion • High cost of production, logistics & • TV advertising is the best medium
(FMCF) distributions in supply chain. with 91% of the total insertions &
• Consumer Product Goods (CPG) • Increased competition from local greater effect on purchase
• Fast Moving Consumer Durables players within D2C model. intentions and product interaction
(FMCD) compared to the past.

Authors: Jacob Wang (C1), Lenka Eleková (C1), Avi Kumar (C1) 133
Basic Material:
Cement
Asia

134
Basic Material Key trends4 Revenues Costs6
Cement • Growth in civil engineering sector due
Revenue (in Raw material 35%
to Urbanization
Overview Year billions USD) Power & Fuel 30%
• Technological advancements in the
2018 224 Transportation 15%
Major markets in Asia: China, India & production process
Vietnam 2019 226.5
• Demand for green cements -> due to Other costs 20%
2020 220.6
Production by top three demand for green buildings in response
players (in million metric 2021 226
to environmental and regulatory
tons)
concerns 2022 232 Cost breakdown
2023 235 High plant and
India • Increasing infrastructure projects (such equipment cost
as roads, housing, airports, ports) in 2024 246.8
0 1000 2000 3000 developing countries – about USD 2.2 2025 259.1 Transportation and
fuel cost has been
trillion over the next 20 years 1 2026 272.0 increasing for the
Revenue (in Billion USD) past 5-7 years
2027 285.6
350
2028 299.9
300
Raw material Power & Fuel
250 2029 314.9
200 Transportation Other costs
2030 330.7
150
100
50 Value Chain
0
2027
2019
2020
2021
2022
2023
2024
2025
2026

2028
2029
2030

Rapidly increasing revenue mainly due to Raw Materials Cement After Sales
the industrialisation and increasing investments
Storage Distribution Marketing & Sales
Extraction Production Service
in manufacturing plants, however increasing
revenue does not direct to the increasing profits
due to high investment costs.
Limestone and Clay Crushing & pre- Most cement Mainly regional and Focus on price Most cement
Sales by segment2 are key resources blending, grinding, companies avoid national differentiation, companies avoid
mined from quarries pre-heating, cooling, storage and try distribution. Cost of distribution networ storage and try
milling, packing and to practice JIT transportation is a ks, public relations to practice JIT
Residential loading key component and brand name.
43%
57% Non residential
1 - https://www.swissre.com/media/news-releases/nr-20200617-sigma-3-2020.html

H I G H B R I D G E 135
Basic Material: Threats to the industry Customers Suppliers
• Pricing Pressures: Producers need to There are three kinds of Raw material suppliers:
Cement reduce prices due to lower than customers: • Limestone (80-90%), Iron
anticipated demand in markets like 1. Non-trade customers: Industrial oxide, Marl from Stone Crushing
Industry Snapshot: Malaysia, Indonesia & Thailand and government infrastructure. Industry
• Globally, more than 1,000 • Possible disruption from China, 2. Trade customers: Dealers/ sub- • Coal for burning from
cement producers operate where cement capacity is 3.16bnta dealers/ wholesalers. the Coal Industry
over 2,300 integrated compared to other APAC countries
cement plants and over 600 3. Retail customers: Individual • Jute, plastic for packaging
with 600-700Mta, With great
grinding stations. housebuilders. Key suppliers in Asia:
exporting capabilities, China can
disrupt other Asian market size. Marketing channels: • China's Anhui Conch Cement
• Five countries account for
nearly three-quarters of the • Rise of protectionism where local • Ads, brand sponsorships • UltraTech Cement
world's cement production: cement buyers may lobby for tariffs • Site visits, long-term contracts • Thailand's Siam Cement PCL
China leads with a 57- to be imposed for cement imports. with discounts • India's Shree Cement
percent share, followed by Distribution channels: • China's National Building Material
India, Vietnam, the United • Online (CNBM) Group Co (CNBM).
States, and Indonesia.
• Directly from the factory Order size: Mainly in bulks,
• While the top 10 players advanced order
account for about 45 percent
of global capacity, the
industry overall is quite
fragmented. Similar industries Key risks
• Fertilizer Industry • Health hazards to the employees during production
• Steel and Iron Industry • Fire and Explosion Risks in the manufacturing units
• Sugar Industry • Operational risks (due to fluctuating market demand)
• Textile Industry • Legal and compliance risks
• Brick Kiln Industry • Energy and Raw materials fluctuating prices
• Sustainability risks
• Stagnated demand over the decade
• Capacity utilization rate of 70% only
• Intensive capital investment required (companies struggle to generate returns
H I G H B R I D G E 136
Transportation
Asia

137
Transportation Key trends Revenues Costs
GCR-China SEA-Indonesia4 SEA-Indonesia
(core) • Psgr traffic YoY (-50%) because of covid2., • Avg. revenue of #3 company - $1.3b • OPEX heavy if freight biz, top3
and goods transport YoY remains the same. USD costs: fuel, lubricant, tire-wear
SEA-Indonesia • EBTIDA margin ~15%-21% consumption.
Overview • Transportation sector has 4.5% share in NEA-Japan5 NEA-Japan
Asia public transportation national GDP in 2020. • Avg $300m USD if only revenue from • CAPEX & OPEX heavy if infra-
segments in 20191. • CAGR :pre-covid 15%, post-covid 5% tickets sold. company, e.g., train stations.
• By total number • Capital intensive industry • Revenue stream: transport tickets, • OPEX can be 150% of annual
NEA-Japan eatery & drinkers, hotel & real- revenue.
14,700 k
• Extreme loss because of over-spending on estate renting fee • Top3 costs: personnel, maintenance,
46 k operations depreciation.
280 k
260 k • Has trends to privatization and transit-
4,4 k
oriented development.
Total (km) Total (#) • Manage each line as a profit center.
Road Rail Water Harbor Airport
• Look forward to diversifying biz for profit.
• Highly emphasize on disaster prevention in
• By per 1 Mn habitants long-term.

3,186

10
Value chain _in passenger public transit setting3.
61
56
1 Planning Operation Rolling stock Maintenance Personnel Shareholders
• Marketing • Early finish • Property owner • Entity in charge • Staffs • Public
/1mn ppl /1mn ppl • Distribution • Drivers • Private
• CRM
Road Rail Water Harbor Airport
Costs medium medium high high low low
Reference:
1. https://www.worlddata.info/asia/south-korea/transport.php
2. https://www.mot.gov.cn/jiaotonggaikuang/201804/t20180404_3006639.html (in Mandarin Chinese)
3. Hypotheised value chain:
a) Roland Berger - https://www.rolandberger.com/en/Insights/Publications/Detoxing-the-railways-A-lean-model-for-Europe%27s-rail-transportation-system.html
b) Oliver Wyman - https://www.brinknews.com/taking-rail-virtual-through-digital-industry/
4. Indonesia
a) Persero - https://pefindo.com/fileman/file?file=PressRelease/2020-05-11-KAII.pdf
b) Other companies for benchmarking - ASDP Indonesian Ferry, PT. Transportasi Jakarta
5. Japan
a) JR Shikoku – https://www.jr-shikoku.co.jp/04_company/jigyou/vision2021.pdf (in Japanese)
H I G H B R I D G E
b) JR Hokkaido – https://www.jrhokkaido.co.jp/corporate/mi/kessangaikyou/20210430_2020_4Q_kessan_01.pdf (in Japanese) 138
 Transportation Threats to the industry Customers Suppliers
population issues, the cost of fuels, and CO2 … are price-sensitive in tickets and highly …mainly come from the domestic or
(core) emissions are the main threats in Asia. rely on service accessibility. adjacent regions.
GCR-China SEA-Indonesia Top rolling stock suppliers in Asia3
• Least traffic access in Western China and • Top 3 CBC: brand image, pricing, • CRRC Corporation Limited - China
other rural & border areas1 accessibility. • Hyundai Rotem Company – S.Korea
• Inconvenience in transfer • Road infra serves ~85% of passenger • Kawasaki Heavy Industries, Ltd. –
• Sustainability – increasing carbon emission2 transport and ~90% of freight. Japan
SEA-Indonesia • Private vehicles, cars & motorbikes, have • Hitachi Rail Limited - Japan
• Long-neglected policy and institutional led to high fuel demand annual NEA-Japan
reform consumption growth rate of ~4.5%. • Transport related biz -
• Underutilized deployment in rail NEA-Japan construction and engineering
• Insufficient road transport infrastructure, • B2C – tickets sold, aiming for the citizens companies, etc.
especially for city commute (metro & bus) and tourists; the market is shrinking • Vendors for non-transport related
NEA-Japan
because of declining and aging population. biz (e.g. eatery & drinkery, venue
• Very serious financial losses and extremely • B2B – renting fee collection, aiming for operator, etc.)
low EBITDA margin (<0.5%) hotels, real estate, venues, and property
managing companies; the market is
• Population recession and aging population
relatively positive.
decrease the overall market
• Frequent natural disaster - earthquake

Similar industries Key risks

Reference: • Other transportation sectors • Revenue side
1. Rural Access Index 58% (page 28), at
min/avg/max scale = 6.5%/45.5%/93% (page
– Parcel companies for freight and goods – Urbanization in major Asian cities leads to less availability of land to expand roads
36) transport – Rising motorization leading to revenue decline to public transport systems
2. Highest CO2 emmission in Asia – 726.3 MTCO2
(page 31)
– Online & offline cab companies – Rising demand for alternate sources like carpooling online taxi services reduces
3. https://www.statista.com/statistics/617847/ • Sharing economy demand for public transport.
new-vehicle-revenue-rolling-stock-
manufacturers/ – Vehicle renting services e.g., • Safety concern
Source: motorcycle renting services (TukTuk in – High rates of accidents due to poor driving road safety.
• Reference 1&2 Thailand), rickshaw in India, etc.
https://documents1.worldbank.org/curated/e – Ride sharing services or car-pooling by
n/742271595404096928/pdf/Road-Transport-
Electricity-and-Water-and-Sanitation-Services- individuals
in-East-Asia-South-Asia-and-the-Pacific-
Islands.pdf

H I G H B R I D G E 139
 Health
Insurance
Europe

140
Health insurance Key trends2 Revenues3 Costs4
• "To attract cloud infrastructure to the These are the health premiums; defined based • The market is highly regulated, with
in Europe region, it is critical that governments in on actuarial analysis of claim likelihood: in regulatory requirements for set-up
LAC develop policies to address the 2019 a total of ~€149 bn premiums were posing significant barriers to entry. In
Overview expected demand by fostering new green written. Income also generated by (highly 2016, the stringent Solvency II
regulated) investment of premiums. regulations mandated capital and
• The European Health Insurance energy generation projects, investing in
Segmentation includes price, extent of
Market was valued USD 272.78 transmission networks, and developing a underwriting requirements to ensure
coverage and type (e.g. corporate or
Billion in 2020 and is forecast to competitive market place.” personal). coverage of claims.
grow at CAGR of 6.07% to 2026 • "SMEs using cloud technologies grew • Claims form the highest cost by far,
• The European Health Insurance jobs nearly twice as fast as SMEs not in estimated at 119bn EUR in 2019 (~80%
Market is segmented based on the
the cloud (Boston Consulting Group, of revenues).Typically the policyholder
type of insurance provider (state vs
2013)." pays up to a specified limit, with the
private for example), type of
coverage, term of coverage, mode • Amazon announced the construction of insurer covering the rest. Other costs
of purchase, end-users, company Edge infrastructure in Bogota and plans include:
and region. new data centers for Argentina, Chile. IBM – Policy design - actuarial analysis of
• It is expected to witness significant is also expanding its data center in Costa risk
growth, owing to the poor lifestyle Rica with more than US$ 21 million of – Sales, marketing and commission
habits of people, a rise in the
investment. – Policy issuance and administration
number of people suffering from
chronic diseases, an increasing – Technology, legal and compliance
number of road accidents, and a
rise in health expenses
Value Chain

Product Design Pricing and Sales and Post-sale service Claims

and Development Underwriting distribution and assistance management

Cloud facilitated big data and advanced analytics being Digital insurance platforms Higher quality customer Scenario analysis and
introduced. have expanded with end- interactions needed as claims assessment
to-end digitally enabled customers engage agents will need to be
Teaming between insurers and big tech to develop advice. more with their own equipped with the
algorithms and AI to convert data and analytics into health: a need for latest technologies to
products, risk profiles and pricing. Multiple “Insurance User innovative, interactive effectively perform
Acquisition” startups products (e.g. their roles, with limited
have recently received wearable integration automation
accelerated VC funding and gamifying healthier
and acquisitions by large lifestyles)
insurers are likely.
141
Health insurance Competitors Benefits Services
in Europe • Europe comprises of a highly regulated
healthcare infrastructure wherein many public
4 Types of Customers:
• Trailblazers —tech savvy, self-directed,
• Generally policies are designed, sold
and administered by the insurance
and private health insurance companies are well company / group
Coronavirus Impact engaged in wellness
established and compete with each other. • Healthcare providers supply treatment
• Prospectors —who rely on
• Market is oligopolistic with several large recommendations from friends/family, facilities; negotiating costs with
• Claims and costs: Mixed impact - insurers
insurance groups comprising multiple brands e.g.
Covid-19 treatment either borne • Homesteaders —reserved, cautious
Aviva plc • Some insurers e.g. BUPA, are
by the public sector (UK, France) traditionalists
or shared (Germany, • Can be segmented regionally with players either vertically integrated, also providing
• Bystanders —complacent, tech-
Netherlands). country specific or transnational healthcare facilities
reluctant, resistant to change
• Leading players: Allgemeine Ortskrankenkasse, • User acquisition intermediaries
• Non-covid care: Positive impact - Distribution Channels:
Allianz Group, Techniker Krankenkasse, Axa S.A., provide the customer “front of house”
Government provision badly • User acquisition intermediaries experience with larger firms
Zurich Insurance Group, Chubb Limited
affected: non-essential underwriting and managing the
• Brokers/agents
operations postponed to comply policies
with restrictions. Potentially • Direct selling: both to businesses and
increased reliance on private private customers
health providers to cover
backlog resulting in increased
insurance uptake Similar industries Key risks Media
• Non-covid claims: Mixed impact - • Non-health insurance including car insurance, • Brexit - requirement to change policies • Forrester, Gartner and Fitch Ratings
some services cancelled rather property & accident insurance and homeowner should UK regulations diverge from EU as well as Financial Times and The
than deferred / taken place in insurance • Solvency II review - regulations may Economist
other settings meaning lower • Travel and life insurance - often includes health necessitate changes in insurer’s
costs components investment structure and risk profile
• Economic downturn: Negative • Healthcare - cost and health changes
impact - increased frequency of
policy lapses as organisations
seek to reduce costs
• Digital mobile medicine: Positive
impact - increased acceptance
of telemedicine, reducing the
cost of appointments to insurers

142
Beer
Europe

143
Beer Key trends2 Revenues3 Costs4
• Spain is one of the fastest growing markets • As of 2020: Ingredients/brewing (18%), excise duty
• Growth comes predominantly from Western – Revenue: $140mm (~10%), packaging (25%), distribution
Europe; however, growing disposable (10%), retail allowance (10%), margin
Market Growth Forecast (2020-28) – Revenue Growth: -16% (10%), and marketing (10%)
income in Eastern Europe will precipitate
increased growth in near future – Beer Sold: 45.9mm Liters
• Increased entry of microbreweries and craft • Segmentation: type, category (ex.
breweries, especially in German market premium), packaging, production
(brewery type), and geography
• Expanded access to alternative financing
methods, such as crowdfunding
• Rising number of female drinkers
• Demand for low-alcohol and non-alcoholic
products
• Increased focus on social impact
• Changing lifestyles and consumption habits
of alcoholic drinks with a trend towards
Beer Sector Generated
“healthier” options
Employment
• Shift towards high-tech production methods

Value Chain

Raw End
Brewing Packaging Warehousing Distribution
Materials Consumer

Outsourced Internal Internal/ Outsourced

Outsourced
Top 5 Beer Markets by
Materials Bottling Labeling
Consumption Bottles On Trade Off Trade
Cans Bars Supermarkets
Kegs Hotels Shops
Internal Internal Restaurants Online

Outsourced Outsourced Outsourced

144
Beer Competitors Customers Similar Industries
• Fairly consolidated with several key players • Customer Profiles: can be segmented • Hard Seltzer: similar ABV, but low in
Competitors operating internationally and domestically; based on age, gender, income, sugar, carbs, and calories. Appeals to
Production however, with growth of micro and craft geography as well as drinking frequency, next generation of drinkers concerned
breweries it is becoming Increasingly fragmented price sensitivity, product quality, place with health
• Production value • Key players: Asahi Group Holdings, Anheuser- of consumption, amongst others • Ready to Drink (RTD) cocktails: higher
– 2019: $46.0bn (6% increase) Busch InBev, Bitburger Brewery, Budweiser • Distribution Channels: ABV, sweeter, appeals to younger,
– 2020: $42.7bn (7% decrease) Budvar, and Carlsberg – On-Trade generally female, consumers
• Number of new breweries dropped • Market expansion strategies include: M&A, new – Off-Trade
from 1,000+ per year (2014-2019) product launches, geographical expansion and
– Direct to Consumer (e-commerce)
to 225 (2020) partnerships/collaborations
• Closure of a number of
• Consumption
• Highly competitive given that there are low
manufacturing facilities and switching costs for customers. Marketing
aggravation of supply chain expenditure necessary to secure brand loyalty.
Consumption • Barriers to entry due to required investments in
machinery and other production equipment as
• European sales dropped by 3bn
well as legal and governmental regulations
liters, an 8%+ drop • Based upon 300 person survey, top 3
– On-Trade: down 42% purchasing criteria are: Taste (85%),
– Off-Trade: up 8%
Price (62%), and Beer Style (55%)
• Hospitality sales hit hardest (40%
drop in 2020) Suppliers Key risks Additional Resources:
• Raw Materials: cereals (barley malt, rice, or • Heavy taxation and legal regulations • Brewers of Europe, Allied Market
Market Growth Forecast (2020-28) maize), hops, and yeast • Effects of climate change and volatile Research, Statista, Businesswire,
• Order size: Mainly in bulk, advanced orders raw materials prices Verified Market Research
• Bargaining power of suppliers influences input • Beer alternatives that appeal
prices. Better quality inputs, higher prices specifically to growing health-
consciousness trend amongst Millennials
and Gen-Z
Sales by Type* Sales by Category*
• Government policies surrounding
Coronavirus that could restrict
consumption
• Recessions/inflation that reduce
consumer spending power
*Lager was the highest contributor with CAGR of 1.7%

*Premium represented more than half of beer market

share and is expected to retain dominance
throughout forecast period 145
 Tax &
Accounting
USA

146
Tax & Accounting Key trends Revenues Costs
• Advanced technologies and automation • The Big4’s worldwide revenue market Cost segmentation:
processes play a big part in transforming the share: Deloitte (28.8%), PwC (22.4%), • Employee wages (55%)
industry E&Y (19.7%), KPMG (11.9%), others • Services provided by 3rd parties (15%)
Overview • Key trends were accelerated by the global (17.3%)
• Depreciation of right-to-use assets
• The tax & accounting industry is part pandemic Revenue segmentation: (10%)
of the financial services economy KEY TOPICS: • Assurance services (40%)
(tertiary sector) • Other cost drivers: customer support,
• Environmental, Social & Corporate • Advisory services (40%) operations and R&D
• Accountants/auditors help to ensure Governance (ESG): new regulations affect
that businesses are run efficiently, • Tax & legal services (20%)
the industry, e.g. financial disclosure
public records are kept accurately, Revenue trend: Cost trends:
and taxes are paid properly and on
changes of climate-related financial risks
• +4% CAGR between 2008-18 • Increasing wages
time • Artificial Intelligence: “...EY has applied AI
to analyse lease contracts to capture • Flat trend between 2018-21 • Value-driven structure (providing
• Accounting services: audit of
accounting records from public and information quicker, resulting in better Main drivers: premium proposition by personalized
private organizations decision making” • Increasing need of assurance services service)
• Tax services: business tax, • Cybersecurity: As data breaches are of • Deals and restructuring work • Cloud-based accounting software are
international tax, transfer pricing, major risk for the industry, identifying cyber soaring
tax management consulting, M&A attacks will be crucial • Service costs (variable expense)
tax, indirect tax, global employer
services, business process solutions, • Automation: “...companies that have
etc. automated more than one-fourth of their
• The industry’s main player are accounting functions report moderate or
Deloitte, PwC, EY and KPMG substantial ROI”

Competitive landscape:
Revenue overview of key players in major geographic regions:
• Competition among key players is
fierce
• Market entry barriers are medium to
high due to high set-up costs, strong
customer loyalty, brand awareness,
significant economies of scale, etc.
• Latest acquisitions: boutique firms
specialized in CRM, IT-Services,
Cybersecurity and Cloud Technology
• Acquisition examples: Deloitte
acquired TransientX, PwC acquired
Olivehorse, EY acquired
SecureWorks, KPMG acquired Adoxio
147
Tax & Accounting Industry Threats Customers Similar Industries
• Automation and AI are taking over traditional The Tax & Accounting industry has six main • Management & strategy consulting
accounting duties customer segments: • Investment and asset management
Service segments: • “...Accountants need to diversify their skills as • salary and wage tax returns firms
technology is reducing the need for traditional, • retirees and investors • Real estate sector
rule-based accounting skills and increasing the
• self-managed super funds
demand for financial analysis and strategy”
• small businesses
• medium-sized businesses
• large businesses

Geographic segmentation:
• North America (43% of global
revenue) Key Risks Key Resources Suppliers
• Western Europe (35% of global
revenue) Cybersecurity: • Human Resources: consultants, • Accounting software companies (e.g.:
• IT security risk is the fastest growing risk accounting professionals and other Oracle, Microsoft, SAP)
• Eastern Europe professionals with deep industry
worldwide • Cybersecurity companies (e.g.: Cisco)
• South America • “...It takes approx. 280 days to identify and expertise
• Africa contain a data breach, and the average cost is • Fast increase in tech savvy consultants
• Middle East $3.9mil.” that are comfortable using mobile
• Asia Pacific (fastest growing • Accounting & tax firms face high compliance platforms and with remote working
region, 6% CAGR) costs when data breaches occur (accelerated during Covid-19) Channels
Financial reporting:
• Networking: strong personal network
• Managing financial disclosure is a concern for
of the firms’ partners
public and private companies affected by SEC
requirements • Marketing channels: Offering is
promoted through the attendance of
• Firms raised concerns about reporting COVID-19 various summits, conferences as well
government programs as online-, and social media
Hiring and retaining talent: appearance
• Keeping top employees as competition
intensifies as a key challenge as high burnout
rates and low morale are the main reasons for
high turnover rate

148
Basic Material:
Steels
USA

149
Basic Material: Key trends Revenues Costs
• Steel demand in the US fell by 18% in 2020. • There is no seasonality in steel • Raw material: in July 2021, benchmark
Steels Steel production increased by about 15.5% production. However, some economic prices for iron ore, coking coal and
• Worldsteel forecasts finished steel demand factors can interfere in the supply and scrap were up 99%, 127% and 89%, y-o-
Overview to increase by 8.1% and 4.3% in 2021 and demand of the product, impacting the y, respectively
• Steel is made through a combination 2022 respectively, supported by a strong revenue. Sensitive to the reduction of • Other costs: Transportation, logistics
of iron with carbon, recycled steel, recovery in the automotive sector and a investments and to the variation in the (these 2 are rising), energy, labor
and small amounts of other somewhat weaker growth in the non- supply of credit and income. • CAPEX 2020: $750 million (U.S. Steel)
elements. residential construction and energy sectors • US market size, measured by revenue,
• Steel is used in cars and construction • Since 1990 the industry has seen a reduction of the Iron & Steel Manufacturing
products, refrigerators and washing in energy usage of 32% and a 37% reduction industry is $139.8bn in 2021.
machines, cargo ships and surgical
in greenhouse gas emissions. Safety has also
scalpels.
been greatly improved thanks to
technological advancements
• The American iron and steel industry
account for more than $520 billion in
economic output and nearly two million jobs
in 2017 when considering the direct,
indirect (supplier) and induced impacts

Revenue
• USA was the 4th largest steel
Steel Sector
producer in the world in 2021,
behind China, India and Japan.
• U.S. production in 2021 Crude Steel
Mining Iron Production Refining Manufacturing Final Product
accounted for 4.4% of total Production
world production.

Upstream Process Downstream Process

150
Basic Material: Competitors Customers Suppliers
Steels • Steel market is highly competitive with many
domestic and foreign firms participating, and, as
• Type of customer: Automotive,
appliances industry, construction &
Iron industry
• Some steel companies own iron mining
Corona Impact a result companies primarily compete on price building, innovation, packaging. mines, such as U. S. Steel
and service. • Marketing channels: Ads, social media, • Australia is the country that exports
Issue
• China produces the most steel in the world every site visit, email-marketing, inbound the largest amount of iron ore in the
• The steel sector suffered from year, responsible for more than half of the marketing (eBook, Webinars, etc). world (main supplier, exporting US$
significant falling demand world’s steel. It has 10 times the steelmaking • Order size: B2B 78.4 billion in 2020, equivalent to 56%
because cars were not being capacity of the US. In 2018, to avoid dumping, US
• Distribution Channels: Online, of the world's exports)
produced (U.S. auto industry implemented tariffs and quotas which are
buys around 25% of all total commercial aea, factory directly on Coal industry
essential to ensure the viability of the domestic
steel) and construction projects demand. • 70% of the steel produced uses coal
steel industry. Import penetration is around 26%,
also slowed down in the first being Canada and Brazil its biggest suppliers. • Nickel and Zinc industry (operators
months of the pandemic. typically alloy, or mix, steel with
• The companies holding the largest market share
• Steel producers responding to in the Iron & Steel Manufacturing in the US nonferrous metals, such as nickel and
that market signal reduced industry include: zinc)
production dramatically, forcing
– Nucor Corporation
painful job cuts as steel mills,
fabricators and pipe and tube – Cleveland-Cliffs Inc.
mills either cut back production – US Steel Corporation
or shut down entirely. This – Steel Dynamics Inc.
caused inventories to deplete.
Response
• The economy began gaining
Similar industries Key risks Media
steam in late 2020 and as
customers restarted production, • Oil and gas, coal, energy equipment, aluminum, • Pop of the supply-chain bubble created • steel.org - American Iron and Steel
the steel industry quickly building materials, mining and metals,paper and by the COVID-19 pandemic. Institute
recovered. The snapback forest products. • Changes in import tariffs and quotas • statista.com - Business data platform
surprised the industry that had • Similarities: B2B, form of distribution, suppliers, • Expansion of steelmaking capacity in • steelbb.com - S&P Global Platts
been in a slump for more than a order size, essential industries in pandemic other countries
year before the pandemic. periods.
• The low supply levels caused • Difference: Some industries are also B2C,
prices to skyrocket, spiking over delivery time,location of operations/factories.
300% since pre-pandemic levels
since orders continue to outpace
supplies.

151
Car Insurance
LATAM

152
Car Insurance Key trends Revenues Costs
• Usage-based insurance (UBI) also known • Passenger cars growth rate in • For P&C (Property And Casualty)
(core) as pay as you drive (PAYD), pay how you decreasing specially due to new insurance sector the main costs are
drive (PHYD) is a type of car insurance transportation models. related to Product Development,
Overview trend whereby the costs are dependent • Value of motor vehicle insurance Marketing, Sales and Operations
• This report presents an overview upon type of vehicle used, measured sector: revenue is generated when • Main costs according to
of the Car Insurance sector in against time, distance, behavior and customer acquires a car insurance segmentation:
Latin America and its evolution place. police and pays for it annually or – Direct: Sales commission, Mkt
over the years, analyzing its
• Regulatory barriers in the Latin America monthly (see table attached). campaign
structure, concentration and the
performance, at a regional level
region are similar with minor – Indirect: Payroll, IT, Rental,
as well as individually by variabilities other G&A costs
country. • Traditional insurance companies
• Overall the market is growing struggles to go digital
from 3% to 7% CAGR per year • Pricing by insurtech is much cheaper
depending on the country (see than traditional insurance companies for
table attached). Considering limited options
traditional insurance model it is
considered in mature phase, for
new insurance business models
and insurtechs it is considered in
expansion phase. Value chain

Product Sales & Pricing &

Operations Claims
development distribution Underwriting

153
Basic Material: Competitors Customers Suppliers
Steels • Brazil top players and share in premium:
– Porto Seguro: 19%
• Insurance penetration is low, with
significant room for growth via
•
•
Insurance has no direct suppliers
The main indirect suppliers are third-
Corona Impact consumer education and product party for IT, Finance and Accounting.
– Bradesco: 11%
innovation
• During the pandemic time there – Tokio Marine: 10%
• Generally, the insurance cost for
were less claims and in some – Sul América: 9% younger drivers is higher than for older
cases users might have stopped
– HDI: 9% drivers, because experience and
using insurance. In order to
– Azul: 9% prudence are age-based criteria in a
address that, insurance
PHYD system.
companies are investing and – Mapfre: 8%
developing more new charging • Purchase process drivers:
– Liberty: 8%
models, like pay as you drive – Pricing
– Allianz: 5%
and pay how you drive. – Coverage
– Brasil Veículos: 4%
• Insurers have offered credits and – Reliability
rebates to policy holders due to – Others: 8%
restrictions. Operationally, • Foreign Players: Tokio, HDI, Mapfre, Liberty and
insurers have responded Allianz
relatively well in the initial
phase of the crisis with most
workforces working remotely.

Similar industries Key risks Media

• Investment • Fraud • Online and offline media
• Banking • Money laundering
• Customer default

154
Insurance
155
Insurance Market Key trends3 Revenues4 Costs5
• Use of analytics to make the Main source of revenue: Premiums. Other • Operations and IT account for ≈50-60%
in the US • adoption process faster. revenue streams: reinsurance, state of cost base.
funds, investments4 • Drivers that could reduce IT costs:
• Digital platforms are spreading
Overview throughout insurance markets, some increased retention rate, virtualize
Global insurance market size in featuring integrated services beyond servers, reassess variable and fixed
USD Billions, CAGR 3.3%1 the core product, working primarily as costs, and etc.
marketplaces to get brokers and Average costs breakdown for a P&C
connect them to an extensive insurer
potential customer database.
• Also, analytics represents a big
advantage for insurers when analyzing
risks based on the probabilities of a
specific event.
2022 2028
• CBC for selecting an insurer are: Price,
Reliability, Strong brand / Reputation.
Premiums revenue by share of
insurance type2

Property & Value chain6

Casualty
53% Life/
Annuity Product Marketing and Pricing and
Research Claims Other
47% development distribution underwriting

Biggest focus across

all insurance
products

1. https://www.bloomberg.com/press-releases/2022-05-11/general-insurance-market-size-to-reach-usd-8500-billion-by-2028-with-a-cagr-of-3-3-valuates-reports1.
2. https://www.iii.org/fact-statistic/facts-statistics-industry-overview
3. https://www.bain.com/insights/the-automation-advantage-in-insurance-infographic/ https://www.bain.com/insights/as-insurance-platforms-take-hold-what-does-success-look-like/
4. https://www.statista.com/statistics/1102802/insurance-market-size-usa/#:~:text=In%202020%2C%20insurance%20premiums%20written,addition%20to%20life%2Fannuity%20premiums
5. https://www.mckinsey.com/industries/financial-services/our-insights/evolving-insurance-cost-structures
6. Global Insurance Report 2022 MK - Page 15
156
Insurance Market Regulations2 Competitors3
• State insurance departments oversee the insurers solvency and • Leading mutual property/casualty insurance companies in
in the US review their rate for coverage. the US in 2021, by revenue ($ US Billions)
How customers are being • Main requirements
reached1 – Must be licensed: By their same state, different ones or from
abroad.
– Capital requirements: Vary by state and by the riskiness of their
business.
– Solvency: State regulator monitors financial health of insurers. If
1) poor financial condition is found, regulators take various actions
2) to try to save it (may fail).
– Guaranty Funds: These funds are state organizations that cover
unpaid claims of insolvent insurers. Being part of these funds is a
requisite to obtain licenses.
• Fact:
– For commercial insurance, workers compensation is the most
highly regulated because it is mandated by state law (with • Five top competitors share a total of 30% of the US market,
exception of Texas). ≈6% on average each.
(1)Brokers mainly
(2)Agency building, multiline
exclusive and home service Key risks4
agents.
• Liquidity: This may arise due to a large number of claims or due or a larger number of events that can make short-term liabilities surpass
(3)No producers are involved. short-term assets.
Includes internet sales where • Actuarial: Companies make actuarial models to predict risks, but these can be affected by factors such as mortality rate variance (they
consumers submit online have to constantly adjust models).
applications. (4) Financial
• Reputation: Bad reputation can derive in a big loss of customers base, meaning the revenues and the liquidity of the company can be
institutions, worksite + others.
reduced.
• Strategic: If the risk management strategies are not well structured and adjusted, risk magnitude can be much greater.

1. https://www.iii.org/article/background-on-buying-insurance#Charts%20and%20graphs
2. https://www.iii.org/publications/commercial-insurance/how-it-functions/regulation#:~:text=Regulation-,Introduction,set%20of%20statutes%20and%20rules
3. https://www.statista.com/topics/3140/insurance-industry-in-the-us/#dossierContents outerWrapper https://www.statista.com/statistics/185365/revenue-of-leading-mutual-property-casualty-
insurance-companies/
4. https://www.affluentcpa.com/common-risks-faced-insurance-companies/
157
Grocery
Industry
Europe

158
Grocery Industry Key trends Revenues Costs
• E-grocery is expected to reach above • The European grocery market had total • Significant costs: COGS, fulfillment
20% of share in 2030 revenues of $2,130bn in 2020 costs, labor costs, marketing and sales
• The adoption of advanced-analytics – Online and discounters posted costs
Overview applications will be a key priority for highest results in 2021, growing • Inflation has a big effect on costs
• Global annual sales(millions)1 grocers to achieve personalized and faster than the market in most increase
tailored promotion and a store-specific countries – “Overall inflation in Europe reached
• The grocery retail market size
assortment – As the COVID-19 impact, 5.6 percent, with food prices
was valued at USD 11,3 trillion in
2021 and is expected to grow at • The increase of self-checkout such as supermarkets and hypermarkets increasing by 3.5 percent.” -
a compound annual growth rate Amazon Go and instant delivery brings saw a decline in sales Mckinsey 2022 Report
(CAGR) of 3.0% from 2022 to 2030 a need for in-store logisticians and last- – Instant-delivery market in Europe • High Energy Costs because of Ukraine
mile delivery workers reached between €3 billion and invasion have been affecting directly
• Investments in new profit pools, such €3,8 billion in 2021 the industry margins
as health and sustainable offerings. • “Retailers need to further reduce their
Another profit pool is media networks costs and find new margin pools to
Sales through advertising space to media tap.”
• Sales volumes are likely to networks – Automation can be a solution to
decline in 2022 as the impact of • Use of Augmented Reality (AR) to innovate the cost model of the
COVID-19 wanes. Inflation (10%) identify stock information and products industry, making online grocery less
is one of the key forces that details to guide customers through the costly than the physical groceries
pushes to a decrease in sales shopping experience
• Expected volume to stabilize
slightly above 2019 values and
revenues to stay clearly above Value chain
2019 values, given the high
inflation rates
Distribution
Food Suppliers Food Suppliers Food Processor Stores Customers
Centers

Inputs and Farming Trade and Food Inventory Forecast Online & Offline
Services Processing Manufacturing → Demand
Forecast
https://www.mckinsey.com/industries/retail/our-insights/state-of-grocery-europe-2022-navigating-the-market-headwinds

https://www.mckinsey.com/industries/retail/our-insights/the-path-forward-for-european-grocery-retailers

159
Grocery Industry Competitors Customers Suppliers
• Drug Stores • Young people • App creators
– As a similarity, the products sold on • Digital apps • Food chains
Biggest Grocery Chains in both industries are indispensable • Young women • Drug companies
for living
Europe • Men • Clothing stores
– As a difference, the value chain has
• Companies
different processes.
Grocery • Factories
Revenue • Clothing Stores
Chain
– As a similarity, heated markets
€86 billion which have been growing more and
Tesco PLC more with the e-commerce/online
revenue
services.
€86 billion – As a difference, products sold are
Carrefour not indispensable for living, as
revenue
there is high luxury.
€74.65 billion
Lidl
revenue Key Risks and Threats
• Sustainability transformation - it presents risks but at the same time, opportunities as it helps the value creation
€74 billion – Market Share loss
Metro Group
revenue ▪ As customers are in favor for sustainable companies, there is a risk of losing Market Share to sustainability leaders
– Higher cost of capital
▪ As capital is moved to sustainable companies
– After the COVID-19, the consumer focus on health is very relevant for it
• As a pandemic consequence, governments are looking for new restrictions looking for more safety regulations.
• Increase of food delivery aggregators
– The relationship with the delivery aggregators increased so hard during the pandemic because of the high demand peaks that
increased the risk of hijacking their customers relationships.
• Consumers are opting for the convenience of smaller, closer stores as a result of the pandemic customers habits that changed. Market
share of the biggest grocery stores
• New pandemics tends to be more frequent and can increase demand peaks as fear of stock outs
https://www.bain.com/insights/the-future-of-european-grocery-retailing-strategy-after-the-lockdown-surge/
https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the%20path%20forward%20for%20european%20grocery%20retailers/disruption-and-uncertainty-the-state-of-grocery-retail-2021-europe-final.pdf
https://www.mckinsey.com/industries/retail/our-insights/a-year-like-no-other-for-european-grocery-retailers-the-state-of-the-industry-post-2020
https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20grocery%20europe%202022/navigating-the-market-headwinds-the-state-of-grocery-retail-2022-europe.pdf

160
Automotive,
Personal
Europe – Core

161
Automotive, Key trends4 Revenues5 Costs6
• “The European automotive sector has Projected market size in Europe auto sales • Variable costs: raw materials and labor
Personal Europe ascended to the top of the global industry. revenue worldwide between 2020 and 2027 mainly. Fixed costs: R&D, sourcing
It has achieved record sales…” (in billion U.S. Dollars)5 suppliers, maintaining facilities, and
(core) • “…As private cars are one of the biggest testing new vehicle prototypes.

17.07

18.88
producers of carbon emissions, the • Key components: raw materials (47% to
transition away from traditional the cost of a vehicle: 47% steel, 8% iron, 8%
Overview combustion engines is the main challenge plastic, 7% aluminum, and 3% glass, and

11.92
European automotive CAGR for car manufacturers.” others), labor, advertising and R&D.
(millions)1 • “…Lawmakers across the globe are planning • CAPEX heavy industry because it requires
437
408 to impose bans on combustion engines to large investment in capital to enter.
enforce this transition.”
• “The pandemic plus the Russia-Ukraine war
2020 2024 have heavily impacted supply chains across
the globe, slowing down the production of
Sales by segment2
passenger cars and forcing manufacturers
SUV 36% to temporarily close production lines.”
Compact 17% 2020 2025 2027
• “Three building blocks—customer
Subcompact 13%
orientation, environmental awareness, and Automotive industry has seasonal trends:
Midsize 8%
economic value creation—have been the Peak in demand in Spring and Autumn
MPV 7%
solid foundation for the success of the
Others 19%
European automotive industry in the past”
Sub
SUV Compact
compact

Value chain
Midsize MPV

Parts
Raw Material Vehicle Transportation Marketing &
EU motor vehicle production by R&D & Design procurement/
supply assembly to Dealers Service
type3 assembly

11
Cars 9 Costs Low to medium Low High Low Low Medium to high
Vans 5
2
16 1. https://www.mordorintelligence.com/industry-reports/europe-market-for-lightweight-cars-industry#:~:text=Market%20Overview,period%20(2020%20–%202025)
Motorcycle 11 2. Find something interesting in here
3. https://www.statista.com/outlook/mmo/passenger-cars/europe#unit-sales
2024 2020 4. https://www.statista.com/outlook/mmo/passenger-cars/europe#analyst-opinion & https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/a-long-term-vision-for-the-european-automotive-
industry
Mature markets: US, Canada, 5. https://www.statista.com/statistics/1317056/driver-automotive-seating-market-europe-value/
6. https://finance.yahoo.com/news/raw-materials-biggest-cost-driver-180628123.html?guccounter=1 & https://insights.tetakawi.com/what-are-the-common-auto-manufacturing-costs
Japan, S Korea, Australia, New
Zealand, Western Europe 162
Automotive, Competitors Customers Suppliers
• Citroën (FR), Peugeot (FR), Volkswagen • Segmentation and relevant splits: • Segmentation and relevant splits:
Personal Europe Group (DE), BMW (DE), Opel - GM (DE), – By type of car: (SUV, small car, – Raw materials suppliers:
(core) •
Fiat (IT), Volvo (SE).
The automotive industry is highly
executive, luxury, sport, pickup) – Semi finished products: Steel,
– By type of fuel: (Petrol, diesel, leather, glass…
competitive, which brings the need to alternative, eletric, hybrid) – Parts supplier: lamps/ accessories/
Corona Impact ensure fast production rates and
• Marketing channels: electric cables
product quality.
• In part due to the supply chain – Test drive, social media, ads – Outsourcing manufacturing some
disruptions that followed the • Market Share: Volkswagen Group (24%), parts
Stellantis (21%), Hyundai-Kia (9%), • Trends:
shutdowns in China and, to the
containment measures adopted Renault (9%), BMW Group (7%), Toyota – Growth of eletric and autonomous
across Europe between March (7%). cars
and May 2020. • https://marketrealist.com/2015/02/m • Order size:
• How is it dealing with impact? akes-auto-industry-highly- – B2C: 1 car
EU industrial strategy and its concentrated/?utm_source=yahoo&utm • Distribution channels:
update of 2021 (to guarantee _medium=feed&utm_content=toc-
that the EU retains global 2&utm_campaign=raw-materials- – Show room and online
leadership while fostering the biggest-cost-driver-auto-industry
green and digital
transformations of its
economies), The EU Green Deal,
EU proposals on supporting the More Trends Key risks Media
digitalization of the automotive • Autonomous Vehicles (Will work with a Huge change in consumer • What is the best media to get
sector, Industrial alliances for data acquisition system, using the users demand/behavior information about this industry?
the developments of key data to promote ads during the ride) New restrictions/taxes on imported parts • https://www.statista.com/outlook/mm
technologies and Plans for re-
• Shared Mobility (Ride sharing, Car from different countries/continents o/passenger-cars/europe
and up-skilling workers.
sharing) Pandemic that might limit supply chain
• Prohibition of Fossil Fuels Vehicles globally & reliance on transportation
• Electrification New regulations from the government on
• Car changing colors to be more manufacturing cars, i.e. C02 emissions…
personalized to the customer Heavily relied on machines and
automation, today it is profitable, later
could be a threat?

163
 Digital
Healthcare
164
Digital Healthcare Overview
• Digital healthcare is the application of digital transformation to the healthcare field, incorporating software, hardware, and services.
(Latin America)
Overview Key trends3 Revenues Costs4
Global market size (billions)1 • Remote health increased 38 times • Product
from pre-Covid-19 baseline. – Hardware
• Aging population (8%) will double in – Software
CAGR: 13,2% 2050.
• Service
• Interoperability of healthcare solutions
– Installment
and systems accelerates the use of
software applications. – Maintenance
Market Segmentation:2 – Replacement
By Technology • Pricing model
– License
• Tele-Healthcare Source: SEK Swedish krona (2016)
– Usage based
– Telecare (Activity
Monitoring and Remote – Advertising
Medication Management) – In-app purchases
– Telehealth (LTC Monitoring – Subscription
and Video Consultation) – Freemium
• mHealth – Transaction fee
– Wearables (BP Monitor, – Support
Glucose Meter, Pulse
Oximeter, Etc) Value chain
– Apps (medical and fitness
Apps Mainten-
Implementa-
• Health Analytics R&D Suppliers Marketing Sales ance/ Replacement
tion
– Digital Health Systems Support
Electronic Health Records
Costs High Low- Medium Medium Medium Low Low Low
– E-prescribing Systems
1. https://www.marketdataforecast.co2m,/3maLrekeat-dreinpogrtms/laa-rek-Heetaslt:h-Nmoarrkteht
By Component 2. https://www.gfmer.ch/mhealth/couArmsefeilersi2c0a13(/4IU5G%_b),us_A%s2i0arePviaewciNfuicqMedetel08.pdf
3. https://www.apizee.com/5-digital-health-trends-for-2022/
• Hardware 4. https://link.springer.com/article/1(0f.a1s0t0e7s/st41g6r6o9w-0i1n7g-0m05a9r-k7et), and Europe
• Software
165
• Service
Digital Healthcare Threats to the industry Channels Suppliers
• Cybersecurity attacks • B2B (hospitals, insurances, health exams, • Hardware (semiconductor, processing
(Latin America) • Public policies that interrupts digital digital platforms, clinics) units, etc.)
transformation • Software (licenses, etc.)
Some Leaders in Latin
• Customers that are against electronic
America e-Health market¹ devices
Marketing
• B2C (retail with consumer electronics and
IoT devices) • Ads, Social Media, Test drive
• Bid participation, site visit
Apple Inc. Opportunities
• Integration to data systems to make the
information available to doctors and Distribution
patients • B2G (Universal Health Coverage)
Airstrip Technologies • Health care accessibility to distant regions • Showroom/online
• Real-time health track • Factory directly on demand

Google Inc.
Similar industries4 Customers Key risks
• AI and Machine Learning • By psycography (Lifestyle, social class, • Recurrent trainings and measures to labors
Orange interests) due to social engineering incidents
– Due to improvement of health and
patient experience to automate • By Behavior (cardiology, dermatology…) • High investment on privacy and security
recurring tasks (e.g., triage, diagnostic • By demography (developing or developed because of the high sensitive data that can
assistance through virtual assistants, countries, public or private sector, urban be attacked by hackers
Allscripts Healthcare etc.) • Low adherence by some customers that are
or rural, hospital or community)
• IoT device industry resistant to use digital products and
– Due to improvement of patient care to register your personal data
check body temperature, blood • Data patterns to take decisions do not
pressure and heart rate. consider specific patients that are outliers
• Softwares and Cybersecurity industry Alternatives
– Due to sensitive data transaction and • High cybersecurity measures such as
amount of data transactions. authentications (biometry, heat, eye, etc)
• Blockchain technology to encrypt data

166
Digital Market² Technology4 Key Trends4
• Latin America Mkt Size reaches US$ • Massification of 5G networks for better • Insurance and Financial Services:
transformation 1,42 Billion (2027) connectivity and data transmission digitization of 100% of their
relationship with customers
Global IT Management¹ • CAGR of 13,20% (2022-2027) • Technology platforms growth
• Areas: Process Transformation, (e.g.digital signature) to connect govs, • Automotive: Internet of Things and
Business Model Transformation, Domain enterprises and communities Blockchain will be essential
Transformation, • Regulations growth on Big Data, • Mass consumption: Latin America will
Cultural/Organizational Transformation Artificial Intelligence and Blockchain to continue to lead the digital
• Leaders: Mexico, Brazil and Colombia improve productivity transformation towards customer
• Cloud computing to optimize data experience
storage and access to the software for • Manufacturing: Automation high growth
the operation • Tourism: Augmented reality and virtual
reality will increase a lot.

Value chain to become a Bionic Company³

Inspire teams ‘Articulate,
Purpose and strategy Build capabilities and processes activate, Embed’
Launch the right initiatives Methodology
Personalized customer experiences
Outcomes Operational excellence enhanced by machines and AI Digital
Services and innovative products ecosystems,
supply chain,
Agile at scale shared services,
Human Enablers Build-Operate-Transfer (BOT) mkt, Industry
[1] Digital HR
https://www.eweek.com/it- 4.0, Customer
management/digital-t ransformation- Data Journey
companies/
[2] Techonology Enablers AI Transformation,
https://www.marketdataforecast.com/market- Modular techonology New Business
rep orts/la-e-Health-market
[3]
https://www.bcg.com/capabilities/digital-
technol ogy-data/bionic-company
[4]:
https://www.nic.lat/digital-transformation-
trends
-to-observed-in-latin-america/ 167
AI, autonomous
robots
168
Autonomous Key trends1 Revenue Streams Costs
• In wake of COVID-19, demand of • Product Fee • R&D
Robots (core) robotics technology is expected to – Hardware • Maintenance
increase among several industries such • Talent Retain
– Software
Overview as supply chain, manufacturing, and
– Services • Overhead
healthcare, due to growing adoption of
Global market size1 • Parts from suppliers
robots in place of humans to reduce • Service Fee
the impact of the virus and to enhance – System Education • Plant and office rental
their market share. – Maintenance
• Players are coming up with low-cost – Repair
CAGR: 13.5% and high-quality robots due to increase
in competition. – Replacement
• Dedicate to design new innovative • Government Subsidies
products while maintaining the
Market Segment affordability of the product. Recently
By Robot Type: developed robots are energy-efficient,
• Traditional industrial robots and are designed to serve specific
applications.
• Cobots
• Professional service robots
• Others
By Application:
• Manufacturing
• Healthcare
• Aerospace & Defense Value chain
• Media & Entertainment Parts
• Logistics Raw Transporta- Maintenance
procure- Product
R&D Material tio n to Marketing / Replace-
• Others ment/ assembly
supply Dealers ment
assembly
Costs High Low High Low Low Low High
Major markets: U.S.,
China, Japan, Germany,
UK 1. https://www.alliedmarketresearch.com/robotics-technology-market

169
Autonomous Threats to the industry Customers Suppliers
• Limitations on load size and high • Two type of customer: Commercial • Raw Material Suppliers:
Robots (core) cost of implementing the system are buyers – Hardware (semiconductor,
expected to restrain the growth of – B2B: Manufacturing, Healthcare, processing units, etc.)
the market Aerospace & Defense, Logistics – Software (Systems, licences)
Key Market Players: • High initial cost of robots and lack – B2C: Media & Entertainment
• ABB LTD. of awareness among SMEs hamper • Marketing channels:
the growth of the market, and make
it difficult to enter – Ads, Social Media, site visit
• Supply chain: global semiconductor • Order size
• DENSO CORPORATION
shortage – B2C: 1
– B2B: 1-100+
• Distribution Channels:
• FANUC CORPORATION – Showroom/ online
– Factory directly on demand

• KAWASAKI ROBOTICS Similar industries Key risks

• Autonomous robots covers a wide • Cybersecurity
range of applications within • Pandemic that might limit supply
• KUKA AG different industries chain globally & reliance on
1. Commercial drone industry transportation
a) a. Similar business model, • Regulations from the government
value chain, revenue and (high-tech)
cost stream • High initial cost on R&D and design
2. Home use robots • shortage of key suppliers:
3. Home Voice Controller semiconductors
• Talent shortage

170
 AI
Embedded
Systems
171
Embedded AI Overview
• Embedded artificial intelligence (AI) is the application of machine and deep learning in software at the device level, when the real-world
(core) information from sensors is processed in real time.
• Key components:
Overview – Hardware: microcontrollers or microprocessors
Global market size (billions)1 – Software: firmware and bootloaders to drivers, embedded operating systems, user interfaces, and beyond.
• Emergence of embedded AI: a shift has occurred from cloud-level to device-level processing of artificial intelligence tasks, data and
results
CAGR: 6%
– With the implementation of AI models on graphics processing units (GPUs), session border controllers (SBCs), and systems on chips
(SoCs), there is less of a dependence on the cloud for AI data processing.

Market Segmentation:2 Key trends Revenues Costs

By Function • Improving security solutions: • Revenue streams • Pricing model • Primary drivers:
• Standalone System microcontroller security solutions that • Product – License – R&D costs
• Real-time System isolate security operations from – Personnel training, churn rate
– Hardware – Usage based
normal operations
• Network System – Software – Advertising • Secondary drivers: Maintenance
• Optimization for Lower Energy and support
• Mobile System • Service – In-app purchases
Consumption: working on real-time
By Application monitoring and visualization tools for – Installment – Subscription
• Automotive energy reduction – Maintenance – Freemium
• Consumer Electronics • Deep learning – replacement – Transaction fee
• Manufacturing • License – Support
• Retail
• Media & Entertainment Value chain
• Military & defense
• Telecom User Mainten-
Implementa-
R&D documenta- Marketing Sales ance/ Replacement
tion
tion Support
2,3 Leading markets: North
America (45%), Asia Pacific Costs Highest Cost Low Low/Medium Cost
(depending on
Medium Cost Low Medium Cost (mostly
due to higher labor
Low

(fastest growing market), segments) costs from skilled

technicians/training of
and Europe 1. https://www.maximizemarketresearch.com/market-report/global-embedded-system-market/33374/ users if it’s B2B)
2. https://www.transparencymarketresearch.com/embedded-system.html
3. https://www.gminsights.com/industry-analysis/embedded-system-market
172
Embedded AI Threats to the industry Customers Suppliers
• Next-generation, paradigm-shifting Three type of customer: • Three types of suppliers
(core) technologies coming up in the future • B2B • Hardware (semiconductor, processing
Some Global Embedded – Automatic contextual – Control systems units, etc.)
reconfiguration • Software
AI Computing Platforms – Telecommunication
– Organic computing • Both (devices/complete systems)
Market Key Players – Others
• Current alternatives
• B2C
– Cloud computing
– Consumer electronics
• Nvidia • Supply chain issue: global Applications
– IoT devices
semiconductor shortage • Consumer
• B2G
•Ascent – Aerospace and defense
• Industrial
Opportunities • Automotive
•DataRobot – Public infrastructure
• Low latency • Medical
• Marketing channels:
• Lower power and costs • Home appliances
•Freenome • Lower need of computing power
– Ads, Social Media, Test drive
• Aerospace and defense
– Bid participation, site visit
• Privacy and security • Public sector
•Grammarly • Distribution Channels:
• Surge in the demand for ADAS in EV • Telecommunication
– Showroom/online
and hybrid vehicles • Agriculture
– Factory directly on demand

Similar industries Key risks

• Embedded AI covers a broad range of applications, within • Vulnerability of embedded systems to cyber threats and
different industries. However, essentially, it is quite similar security breaches
to the following industries or the combinations of them: • The high energy consumption of compact embedded systems
1. Software industry compromises the overall lifecycle of embedded devices,
a) Similar in terms of business model, value chain, and imposing a severe challenge to the growth of the embedded
pricing model system market,
2. IoT device industry
a) Can be used as a good reference when thinking about
specific applications/product types

173
Public Aerospace and
Defense (A&D)
Industry
USA

174
Public Aerospace Key trends Revenues Costs
• Political: High Defense Spending 874 B USD in total Industry Sales Revenues Cost Drivers:
and Defense Promoting R&D and Manufacturing and in 2020 1. Design time by engineers
(A&D) Industry in Ukraine’s lend lease.
For comparison (2021): 2. Manufacturing costs (Labor, materials,
• Economical: Represents a significant
USA number of national income and jobs.
• US Budget for National Defense: 753B compliance, overhead costs)
• NASA’s budget: 23,3B 3. Field service (maintenance)
• Technological: Space Sector growth and
Overview recovery post-covid through digital Number of Workers: 2.09M Source
• Description: A&D comprises the innovation. Source: Aerospace Industry Association, Aerospace and Defense Industry:
design, development and • Environmental: Sustainability - Deloitte, NASA
manufacture of technologically Capex/Depreciation: 9.2B/13.9B = 67%
Electrical propulsion, Sustainable Total military spending in 2021: 2.113T Stern (NYU)
advanced aircraft, space systems aviation fuels and hydrogen propulsion.
and defense capabilities. They • Top five spenders: US, China, India, UK, Net Cap Ex / Sales: 0.58% Stern (NYU)
sell their products and supporting • Sources: 1 - 2- 3
Russia
services and sustainment
programs to both governments Source
and private companies, but
government customers’
requirements generally drive
product development priorities.
• Ownership: Many are state owned Value chain
or state influenced to some • A&D companies depend on thousands of
degree while others have grown suppliers and subcontractors to procure
out of public-private partnerships raw materials, parts and subassemblies,
or government functions that and outsourced processing, e.g., treatment
have been privatized. required for manufacturing their products.
• Segments & Products: • They depend on the supplier network to
Commercial & General Aviation meet performance specifications, quality
(Private), Military Aircraft, Space standards and delivery schedule of the
Systems, Ground Defense and products and services.
Shipbuilding. • Ability of OEMs to deliver on time and
• Sources: 1 , 2 within quality standards is dependent on
no suppliers failing to provide the right
product or part at the right time. Source

175
Public Aerospace Competitors Customers Suppliers
• Biggest global Competitors • Key Customers: • Suppliers serve both commercial & defense
and Defense – The Boeing Company (US) – US Defense (Military) segments.

(A&D) Industry in – European Aeronautic Defense and

Space Company (EU)
– Private Airline Companies (American,
Delta, Southwest, United, etc)
• Categories of suppliers by end-use (% of
total Industry revenue):

USA – Lockheed Martin (US) – Private Jet Companies (Beechcraft, –

–
Focused on Defense (15%)
Focused on Commercial Aerospace
– Airbus (FR) Cessna, Gulfstream)
Corona Impact – Northrop Grumman Corp (US) • Trends (Deloitte): Production (25%)
– Deployment of digital thread and smart – Focused on Commercial Aftermarket
• How was the industry affected? • Other Players:
(60%)
Massive revenue losses and high factory to drive efficiencies
– BAE Systems, Safran, Raytheon, GE
– Digital innovation for growing • Categories of suppliers by type of
unemployment, erosion of the Aviation, General Dynamics, United
production:
military capabilities and Technologies Corporation aftermarket revenues
– Defense contractors to leverage – Original Equipment Manufacturer
breakdown of highly complex ref
innovation for building advanced (OEM): Boeing, Airbus, Lockheed
supply chains. Martin, Raytheon, BAE Systems,
military capabilities
• How is it dealing with impact? Northrop Grumman, General Dynamics)
– Innovation to continue accelerating
Priorities (descending): – Tier 1: Parts
growth in space market
Manufacturing - – Tier 2: Components
– Advanced Air Mobility firms to start
reestablishment of production,
adopting new innovative business – Tier 3: Systems/Module
Supply Chain - refocus to models – Electronics
recover quickly, Product
– Decarbonization – Aerostructures
strategy - adaptation of
offerings and Innovation - find – M&A to drive growth in emerging – Propulsion
technologies
creative solutions to improve – Services
efficiency and products.
• Sources: 1 - 2 Source: BCG

Similar industries Media

• Geopolitical and economic volatility. • Public advertise from the government
• Complex supply chain. • Aerospace Industries Association
• Competition in domestic and international • Aviation Suppliers Association (ASA)
markets. • Source
• Various regulations and restrictions. Source
• Source

176
Private Equity
LATAM

177
Private Equity Key trends Revenues Costs
• Annual number of PE transactions in • Drivers: management fees (~2% per • Organizational Expenses - relate to
(LATAM) Latin America increased from 133 in year of managed assets) and establishing and organizing the fund
2010 to a high of 400 in 2019 perfomance fees (~20% of the profits and its infrastructure;
Overview • The lower perceived risk of investing in gained from the sale of a company). • Operational Expenses - relate to the
• LATAM is a heterogeneous region the region attracted PE firms to invest operation of the fund (management,
with a growing population and in companies providing services to the acquisition, due diligence)
household income but is not yet new middle classes. • Extraordinary Expenses - include
mature, therefore providing • The investment pouring into fintechs is litigation and identification costs.
attractive opportunities for largely coming from private equity
private equity (PE). markets — and much of it is from
• Industries with especially high overseas such as the US.
potential for growth include
Agribusiness, Renewable energy,
FinTech, Education, Health care
and Third-party logistics

Value chain

Deal Lifecycle: Deal Sourcing & Performance

Due Diligence Exit Preparation
Typically 3-5 years Screening Improvement

https://home.kpmg/xx/en/home/insights/2022/01/pulse-of-fintech-h2-2021-emerging-markets-latam.html
https://www.privateequitywire.co.uk/2020/04/20/284839/brazil-provides-pe-investors-real-route-latam-opportunities
https://www.cambridgeassociates.com/wp-content/uploads/2016/09/The-Private-Path-to-Latin-America%E2%80%99s-Most-Dynamic-Sectors-1.pdf
https://ihsmarkit.com/research-analysis/latin-america-exploration-and-production-to-remain-resilient.html
https://www.investopedia.com/articles/financial-careers/09/private-equity.asp
178
Private Equity Competitors Customers Top Investor Types
• Key Players: Blue Equity, Generate Capital, Accredited investors; • Private Equity Firm,
(LATAM) Cruz Ventures, Oikocredit International Pension funds; • Venture Capital,
• Competition intensity is high
Corona Impact • Angel Group,
• The main investments from PE investors • Family Investment Office,
• As the global economy recovers are infrastructure and technology
from the Covid-19 pandemic, • Hedge Fund
Latin America has become a
‘regional hotspot’ for PE as 70%
of private equity firms plan to
invest over the next 5 years in
this region
• Effects of shifts to wholescale
"work-from-home," accelerated
digital transformation trends
and drove demand for new,
improved digital infrastructure,
catalyzing innovation and M&A
activity in this sector

Similar industries Key risks Media

• Venture Capital • Jurisdictional differences in law • LAVCA
– pools money from investors to purchase • Cultural differences • Labnews
shares in companies • Valuation misalignment
– PE usually has complete control of the
companies
• Leveraged buyouts (LBOs
– A company is bought out by a private
equity (PE) firm, and the purchase is
financed through debt, which is
collateralized by the target’s
operations and assets.
• Mutual funds
– Mutual funds can invest indirectly by
buying these publicly listed private
equity (PE) companies.
• Crowdfunding
179
Europe’s pharmaceutical
industry at first glance

180
Europe’s Key trends Revenues Costs
• Rapid growth in the market in emerging Europe’s pharma market was worth R&D expenditure breakdown2
pharmaceutical economies such as Brazil (11.7%), China 2 ~250B EUR is expected to grow at • Pharma financial metric: Return on Research Capital
(6.7%) and India (11.8%). This leads to a 5.4% CAGR from 2021 to 20282,5
industry at first gradual migration of economic and
(RORC) = Current Year’s Gross Profit / Previous Year’s
R&D Expenditure6
research activities from Europe (only 5.8%
glance growth for the top 5 EU markets) to these
• CAPEX intensive industry6
fast-growing markets2.
• The fragmentation of the EU
Overview pharmaceutical market has resulted in a
• In the past two decades, the lucrative parallel trade (~6B EUR in 2020)
worldwide value of depriving the industry of additional
pharmaceutical goods traded has resources to fund R&D2.
grown sixfold, from 111B EUR in • Data aggregation technologies in clinical
2000 to 618B EUR in 20191. and commercial settings are maturing,
Europe accounted for about~250B enabling biopharma companies to gain
EUR in market value in 20212. better insights and monetize the data they
amass4
• The healthcare industries
• The life sciences space is becoming
provided more than 7M jobs in
increasingly globalized while local
2018. The Pharmaceutical
requirements continue to become more
industry is a key industry within complex, creating a need for sophisticated
the EU Economy3 coordination4
• Another main pillar of the
manufacturing side of the
industries is the medical
Value chain7
technology sector, which was
worth 120B EUR in 2018 and
provided 730,000 jobs3 Source Mix active
Manufacture Distribute to Prescribe
regulated & ingredients Sell to
the finished hospitals & drug to
nonregulated (APIs) & wholesalers
dosage form pharmacies patients
materials excipients

181
Drivers of Competitors Customers Suppliers
• There are 10 leading European pharma • There are three main customer groups: EU27 imports of all pharma products
Europe’s companies. They are (in order of – Physicians 2019 breakdown13
pharmaceutical market capitalization in 2021): Roche,
Novartis, AstraZeneca, Novo Nordisk,
– Hospitals, wholesalers, and
pharmacies
industry Sanofi, GSK, Monza, Bayer, Genmab
and Merck Kgaa10 – End customers, i.e. patients11
• However, US companies are also • End customers in emerging markets are
Corona Impact players in the European market. growing in importance. However, they
Examples are Johnson & Johnson base their choice of medicine on
• The COVID-19 pandemic heavily
Services, Inc., Gilead Sciences, Inc., different factors than more developed
impacted the pharma industry
and will lead to long-lasting Merck & Co., Inc. and Pfizer Inc. countries. This influences the design of
changes in the value chain. pharma products and services12
According to a Bain & Co. survey
performed on pharma
executives, changes will happen
in the following areas (% of
pharma execs who agree or
strongly agree): Faster adoption
of telehealth (93%), pharma
supply chain reconfiguration Key risks Regulation
(86%), growth of online
pharmacy channels (84%), • The relocation of API manufacturing to Asia has reduced • There are three key regulations in the European
changes in patient triaging and supply chain reliability, resulting in increased drug shortages pharmaceutical industry. They are often referred to as GxP17
workforce flow (84%), and new due to quality issues and disruptive events14 – Good Clinical Practice (GCP)
go-to-market models in pharma • Due to the classified proprietary knowledge of their – Good Laboratory Practice (GLP)
(74%)8. medicines, pharma companies are especially vulnerable to – Good Manufacturing Practice (GMP)
• The cost of acquisitions rose cyber attacks15 • These result in frequent external audits and are fundamental
significantly, with the average in the operations of European pharmaceutical companies.
price up 25% as acquirers
increasingly underwrote revenue
synergies and aggressive growth
targets to justify
• valuations. Looking ahead, M&A
looks set to continue to grow
across all sectors9

182
Wind Energy
USA

183
Wind Energy in Key trends Revenues Costs
1. Environmental • Main revenue streams: • CAPEX (significantly heavier than Opex)
USA – Specially important in the – a) Energy sold to: 1. Installation and Equipment (wind
construction and equipment • 1) Wholesalers or pool; a short term turbine components; in steel:
Overview manufacturing processes, may agreement, in the Stock Exchange. tower, gondola and in glass viber:
• Description: generation of energy change the final location of the pallas)
• 2)Particulars: with a PPA (Power
is produced in a wind farm. wind farm due to environmental 2. buy/rent the place
Particular Agreement), that is an OTC
Ownership: Electrical companies matters 3. Connection Point Investment (I
(over the counter). If the particular is a
and societies (partnerships and – Impacts in the location decision to marketer, they could resell the energy Fabricated II To Fabricate)
stakeholders); Examples of have the better angle of the wind afterwards in the stock exchange. 4. Long term Insurance
companies that produce and sell turbines (better efficiency for
– b) Subsides from the government 5. R&D Development to increase
energy in USA: Vestas, GE generating energy from wind)
Energy, Gamesa, Suzlon, – c) Other investors efficiency (a lot of initiatives)
2. Legal & Economic
Siemens, Acciona, Nordex, – d) Selling the facilities • OPEX
– Overregulated industry to both
Repower… 1. Maintaining of Installations I In live
construct and operate
• Types: Offshore vs Onshore. II Supervision by Remote
– A lot of Stakeholders, government
Differences between them: 2. Short term Insurance
as well, with a key impact in
• 1) Location (Water (seas) and soil permissions, tax reductions and
respectively) 2) Required subsides
installations (more expensive in
3. Technological
the 1º) 3) Generated Power
(more in the 1º because of higher – R&D initiatives to increase
sizes of wind turbines, in general effectiveness in the performance
terms)
• Product: electrical energy in two Value chain
different markets:
Two key points: 1) The connection point in the construction process in which you should connect the less number of turbines with the
maximum power capacity. 2) The aiming factor: this is the metric to decide how locate the wind farm considering the moments when there is
wind and prices of the market. Like this you can sell energy when the price is higher. Operating Value Chain:

1: GENERATION 2: ELECTRICITY TRANSPORTATION

3: SELLING
Transforming mechanical wind Through the connection point to
1 Wholesalers 2 Particulars
energy to electricity the distribution grid

184
Wind Energy in Competitors Customers Suppliers
• Energy industries that produces • Segmentation • To build a plant, wind turbines, blades,
USA electricity. It includes nuclear, – Industrial, commercial, residential, and installations are required
Corona Impact petroleum, natural gas, and others. agriculture • Two types of supplier depending on
• Importance of renewable energy is • Main Customer geography: onshore and offshore
• COVID-19 impacted wind turbine
significantly increasing due to the • Key supplier: wind turbine is key factor
manufacturing + lack of – Industrial: AT&T, Walmart, etc
global climate change issue for wind energy production
manpower for maintenance • Demand
affected market growth • Order size
– Dramatically increasing for the past
• Also delaying of project decade – driven by size of plant area and
negatively affected blade diameter of wind turbine and blade
production and turbine • Order size
installation market too – B2B: 100-1000 megawatt (MW).
• Shifting the supply chain from – B2C: 1-100 kW
foreign import to domestic could
reduce the impact
• Digital implementation help to
control/manage the project
(reduced labor force)

Similar industries Key risks Media

• Renewable energy industries, but • Threat to wildlife • Public advertise from government
bioenergy • Noise and visual pollution website
• Plants are significantly limited by the • High upfront cost (CapEx) but • Green energy association
location and weather immature technology
• Size of plant is different by type of
energy

1. https://en.wikipedia.org/wiki/Wind_farm
2. https://en.wikipedia.org/wiki/Wind_turbine
3. https://www.irena.org/wind
4. https://www.alliedmarketresearch.com/wind-energy-market-A10536
5. https://www.eia.gov/todayinenergy/detail.php?id=28912
6. https://www.grandviewresearch.com/industry-analysis/renewable-power-generation-market
7. https://www.windpowerengineering.com/awea-consumer-demand-drives-record-year-for-buying-wind-energy/#:~:text=AWEA%27s%20U.S.%20Wind%20Industry%20Fourth,Power%20Purchase%20Agreements%20(PPA)
8. https://www.alliedmarketresearch.com/wind-energy-market-A10536
9. https://www.windpowerengineering.com/awea-consumer-demand-drives-record-year-for-buying-windenergy/#:~:text=AWEA%27s%20U.S.%20Wind%20Industry%20Fourth,Power%20Purchase%20Agreements%20(PPA)

185
Vaccine
industry
Europe

186
Vaccine industry Key trends Revenues Costs
• Political & Economic- Increase in • Revenues in billion USD worldwide • It is a CAPEX heavy industry
(Europe) government and private funding due to • Heavy R&D focused industry. Drivers
increased awareness of need post the maximum investment value
Overview covid pandemic.
• 3/4th of the vaccine production • Technological- Increase emphasis on
happens in Europe messenger-RNA vaccine technology to
cure/prevent diseases, specifically
76% cancer.
• Social- Increased demand of vaccines.
• Environmental- Increase emphasis on
bio hazard potential of vaccines.
• Demographic- Change in primary target • Drivers
customers from only children and
– Increased need for vaccination
teenagers to include even the adult
13% after covid 19
8% population.
3% – Growing incidence of HIV and
• Global- Awareness of increasing
cancer in Asia Pacific
Europe North Asia Rest dependence on India for manufacturing
America of vaccines.

• Vaccine industry is a significant

contributor to the EU economy,
creating 122,000 jobs (directly
and indirectly)
Value chain
• Every year 1.7 billion vaccines
are produced in Europe
+/- 26 months
• EU has 27 vaccine production
sites in 11 countries
Distribution to
R&D and
Raw Material Mass production Assembly & hospitals/ Health
approval Consumer
assembling (Scaling) Packaging Authorities/
(Major)
pharmacies

187
Vaccine industry Competitors Customers Suppliers
• Very competitive with no apparent • Key buyers: • Segmentation and relevant splits-
(Europe) technological advantages for any • Government Production and manufacturing
company • Key suppliers (if any)
• Multinational Organizations (such as
Corona Impact • Key players are: GSK plc. (UK), WHO, the World Bank) • Trends
• Extreme positive influence on Bavarian Nordic (Denmark), Merck and • Order size
• Private firms
vaccine industry due to boost Company (Germany), CSL limited
(Australia), Norvatis AG (Swiss), • Normal size: Billions of dollars
in demand, change in
customer’s awareness and Emergent Biosolutions (US), Johnson &
perception for the product. Johnson (US), Pfizer (US), Sanofi
• In response to this, the Pasteur (UK)
European countries are • Market shares not known
investing more in this vital • Overall CAGR expected to be 12.28% by
public health instrument by 2025.
understanding the need for
strengthening immunisation
infrastructure, securing uptake
of routine vaccinations, and
provide timely and equitable
access to new vaccines- All
with a goal to create a
sustainable post pandemic Similar industries Key risks Media
world.
• High R&D cost industries such as: • Too high investment/R&D costs • Tech firms such as Youtube, Tiktok to
– Oncology drug industry • High Regulations partner up with governments to
promote vaccines
– Natural energy source industry • Unexpected pandemics
– Waste management industry
– IT industry

188
Video Games -
Consoles
USA

189
Video Games - Key trends Costs
Competitors • Console’s R&D and COGS.
Consoles (USA) • Fierce competition between three main players (oligopoly): Sony and Microsoft in open • Game’s R&D and COGS. (if
war, while Nintendo follows a Blue Ocean Strategy (E.g., Nintendo Switch which first/second-party game).
Overview innovatively mixed portable and home consoles, relies on IP and stability, instead of • Manufacturing, distributor and retailer
• Revenues for the video game high performance). (offline or online) costs.
consoles market in the United • Subscription models & DLCs offer opportunities for additional revenues and cost • Marketing costs (to have exclusive
States was $7.10Bn in 2022 cutting. third-party games).
(equal to 7% of total sales Products
worldwide). Revenues
• Generational shift from 8 to 9.
• The US console market is • Dematerialization of games and consoles & increased usage of Cloud gaming.
shrinking (CAGR revenue • Hardware sold at loss/cost
forecast: -3.3% for 2022-2026) • Integration of social features and additional content to maximize console value (e.g. • Seasonality: Christmas
with the exception of 2020 and Netflix, Spotify, Twitch).
2021 due to Covid-19 due to a Customers
combination of supply chain • Lower fidelity due to declining switching costs and multiplication of gaming devices
issues, fears of recession and and multi-homing. Importance of interoperability and retro-compatibility.
inflation, delays in the major Suppliers
AAA games and grueling
• Microchip shortage due to demand growth and COVID, despite new investments
competition with traditional
(Bottleneck).
competitors (Mobile, PCs) and
new ones (Multiverse, VR).

Value chain
• Value Chain for first & second-party games.
• Red shows declining stakeholders. Green shows growing
actors.
• For third-party games, the value chain includes a
publisher, which funds a studio, negotiates with console-
makers (commissions for games) and gets benefits.

190
Video Games - Competitors Customers Suppliers
• Other competitors: Mostly B2C. Different segmentations are possible for US customers: • For console-makers,
Consoles (USA) – Mobile industry (Devices, • Device > Mobile: 61% > Console: 37.3% > Computer: hardware and concrete
games) 31.4% > Tablet: 26% games: Micro-chips
Corona Impact – PC industry (Devices, games)
• Age > Below 18: 20% > Between 18-34: 38% > Between 35- manufacturers, plastic,
54: 26% > Above 55: 16% energy.
• Sales boomed during pandemic – Other supports (Metaverse,
(Revenue increase: +15% Key Motivation to play (In February 2021) • Indirect (Content)
Virtual Reality) • 66% of the gamers play to unwind and relax.
(2020), +8%(2021)). suppliers: Third-party
– Substitutes (Entertainment: • 52% of the gamers play to kill time (when commuting or taking a developers and IP.
• Production faced major Shows, Movies, Sport e.g. ) break).
bottlenecks due to social • Only 37% of the gamers play to solve a problem.
distancing (E.g, difficulties for Preferred genres
socially distanced voice-acting; • Most preferred are Casual games (Tetris, Candy Crush), with 63%
issues with coding remotely). of gamers.
• Procurement affected by • 2nd are Action games (GTA, Mario) with 39% overall. Among
major micro-chip shortage, console-players most preferred genre (64%).
crippling & delaying Further information on US Customers:
manufacturing of new gaming • 80% of population plays routinely.
devices. • 54 % male (46% female)
• Popular In-person gaming • Average time played a week increased by 14% between 2020 and
events & E-sport competitions 2021 (7.5h/week)
cancelled; limiting marketing,
branding opportunities and
additional revenues. Similar industries Key risks Media
• Hardware/Software development • Economic (Pro-cycle product) • Websites: gamesindustry.biz;
• Streaming platforms • Environmental (Energy-guzzler i.e. High CO2 emissions). IGN, ESA
• Entertainment (Cinema/series) • Social (Crunching, sexism & homophobia). • Podcasts: Gamers with Jobs
• Workforce (Shortage in talents). • Books: Dr. Wardyga, Brian J.
2019. "The Video Games
• Regulation (targeting addiction, violence, censorship and
Textbook: History, Business,
child protection.)
Technology". s.l. : CRC Press,
• Technological Disruption 2019.
1. Customers may own two platforms (multi-homing), which explains why the sum of percentages don’t make 100%. This tendency of multi-homing has been increasing due to lowering switching
costs and multiplications of platforms.
2. By segmenting by age groups, we notice that the average gaming time has increased by 54% for 15-24y players, showing a true rise for this group only. Other age groups have a more
reasonable (Between 5-15% increase) gaming time growth. This rise may be due to Covid-19 and successive lock-downs.

191
Offshore Wind
Energy
192
Offshore Wind Key trends Revenues Costs
• Costs- The costs of wind turbines have • Power Purchase Agreements (PPA): • Engineering, procurement, and
Energy halved in the last four years, because Legally binding contracts between construction (EPC) contracts, which
they have gone into mass production. buyers and sellers that define all the includes the cost of commissioning:
Overview • Weather- While technology is commercial terms for the purchase of The EPC is responsible for engineering
improving, the industry is facing electricity. The buyer, also called off- and design, procurement of wind
• Wind energy is expected to
extreme weather conditions that it has taker, is usually a commercial or turbines and other balance of plant
provide the highest contribution
never had to consider before. Due to industrial end-consumer, but can also equipment and materials, and
of renewable energy to the EU.
climate change, cyclone and be a government entity. construction and commissioning of
The EU has the largest wind
earthquake zones pose great risks to • To encourage decarbonisation, generation facilities.
energy capacity in the world -
comprising 70% of the total the offshore industry. government used to encourage • Raw materials such as steel
world’s capacity. The offshore • Certification- By verifying that a subsidies on bids, which used to • Operation & Maintenance (O&M) costs
wind industry is still in the project is designed, built, and operated increase the price and hence, the include insurance, land rent, admin
process of developing however according to accepted industry profits. However, with many tasks, service, repair and spare parts,
with Europe’s maturing supply standards, certification ensures competitors in the market now, there power, etc.
chain, along with industry reliable quality, stable operation, and are reverse auctions now- in which • Cost increases as turbine size
expertise and competition, proper risk management. This brings bidders compete by offering to accept increases, though there are benefits to
offshore wind can become confidence for all stakeholders, helping lower and lower subsidies. Some recent using fewer, larger turbines –
competitive with other energy the project to secure funding and auctions concluded with winning bids complexity and construction of the
sources within a decade. regulatory go-ahead. for no subsidy at all. overall farm site is greatly reduced
Offshore wind energy has with fewer and larger turbines.
numerous advantages that • As the revenues are reducing, the costs
compensate for its higher costs: are reducing as well - due to external
so even though land in coastal factors such as falling steel prices and
areas is more expensive, the high technology improvements. There are
wind speeds produce more power Value chain
also more scope of reduction from
per unit. Low interest and low adopting efficient EPC practices,
steel prices have helped in cost streamlining operations and
cutting along with improved maintenance, which will cut costs and
technology that has created prevent revenue leakage, lowering the
larger and more durable costs with new financing structures,
turbines. and reducing the cost of market access
by renegotiating contracts

193
Offshore Wind Competitors Customers Suppliers
• Key success factors are lower costs and • States are powering their households • According to a Joint Research Centre
Energy access to technology which will enable with wind energy technology market report, three EU
the firms to realize economies of scale • However, going forward, the exposure companies account for 98 % of the
Corona Impact earlier of the industry to market prices (so- market share for wind turbines in
• Europe now has a total installed called merchant risk) and thus to Europe: Siemens-Gamesa (69 %), MHI
• Worldwide investment in
offshore wind capacity of 25 GW. Total revenue fluctuation is likely to increase Vestas (24 %), and Envion (5 %).
renewable energy increased by
5% in the first half of 2020, Wind capacity is 236 GW significantly
despite the global pandemic. • Key players: Orsted(4.4 GW), • As a share of overall electricity
• The renewable sector’s strong Iberdola(1.3 GW), Equinor(0.4 GW), consumption, offshore wind plays the
performance was led by RWE(2.4 GW) biggest role in Denmark (15 %) and the
offshore wind, which made up • Key countries: Netherlands, Germany, UK (8 %),and a more limited role (3 to
for the delving investment in Belgium, Portugal 5 %) in Belgium, Germany and the
solar, onshore wind and Netherlands.
biomass.
• Investors put $35 billion into
offshore wind in the first six
months of the year, which was
higher than all the investment
in 2019.
• Some EU markets had
successful increases in Similar industries Key risks
particular: e.g., funding in • Other renewable energy sources have • Weather- how resilient are the offshore wind farms to severe weather and hurricanes?
France increased by more than similar structure of high capex – Maintenance- Offshore wind turbines are more expensive to maintain due to
three times. requirements and grid like connectivity accessibility of land and corrosion from seawater.
needed. Examples include solar and
– Innovation- Initial wind farms were placed in shallower locations, which means that
hydro
future win farms will have to be placed in deeper locations and create technical
challenges.
– Environmental- the impacts of offshore wind farms on marine and avian life in
unknown, but it is possible that they disrupt wildlife patterns.
– Political- The industry needs policies with foresight to be able to properly regulate a
rapidly evolving market. Wind turbines can cause “aesthetic pollution” and
negatively impact tourism and real estate value.

194
 Carbon Capture
Utilization & Storage
Core

195
Carbon Capture Key trends Revenues Costs
• Currently 0.05 Giga ton CO2 is being • Turnkey post combustion solutions/DAC • Post-combustion & DAC is CAPEX
Utilization & captured per year and expected to equipment/Scrubbers intensive
Storage (core) •
reach 0.5 Giga ton per year by 2030
Net zero is not enough. Negative
• Utilization of CO2 into useful products • Post-combustion is $100/Ton
• Pipelines/Vessels for transporting CO2 • Direct Air Capture is $500/Ton
emissions such as removing CO2
Overview • Vessel design/Cavern prep for CO2
already in the air and oceans is
storage
• CCUS is an integral solution to required which increases the demand
of CCUS • Equipment for CO2 injection
reducing global warming. Most
common way to capture carbon • Climate scientists estimate that 10 giga
is using solvent ton of CO2 need to be removed per
• Carbon Capture: Direct from year by 2050 in order to reach the Paris
the atmosphere, post Agreement goal of limiting the earth’s
combustion from factories, temperature rise to no more than 1.5
Ocean by Algae/direct degree Celsius of pre-industrial levels
seawater removal or land
(biochar)
• Utilization: Can create fuel, Value chain
chemicals, cement, aggregate,
polymers or plastic Capture/Liquefaction is Emerging: Focus is on innovation by high R&D spend to reduce the cost
• Storage: Can be stored in Transportation is Mature : Pipeline is CAPEX heavy while vessel is CAPEX low but more flexible
underground caverns or Storage is Mature: Cost is high so customer would rather utilize/sell Utilization the carbon
depleted oil/gas reservoirs Emerging/Growth: Firms are finding new ways to utilize carbon in their production while others are focused on marketing their products that
use carbon to grow cash

196
Carbon Capture Government Actions Customers Alternatives
• Different government follow different • Any government interested in capturing • Engaging in achieving net zero carbon
Utilization & ideas to limit the CO2 release such as CO2 directly from the atmosphere emissions by planting forests to offset
Storage (core) implement carbon taxes if a certain
firm emits CO2 more than a certain
• Any industry that emits CO2 such as
refineries & plants
your carbon emissions

amount or by introducing Cap-and-

• Any industry that utilizes CO2 as raw
Challenges trade CO2 emissions permit
material such as carbon fiber, fuel,
• Carbon capture uses extensive • Not all governments impose those ideas chemicals & plastic manufacturers
power which if supplied by the so not all firms have to engage in
• Enhanced Oil Recovery accounts 90% of
grid the trade-off carbon saved carbon capture but the trend is rising
global CO2 captured usage
vs power (usually supplied by • Governments also provide incentive to
• Capture of other GHG
fossil fuels) has to be taken use CO2 such as tax credits
into account
• Legal storage challenges such
as liability for potential leaks
and the jurisdictional Philanthropy Suppliers Key risks
complexities associated with
underground property use • CCUS receives less than 2% of all • Engineering Service firms • Not achieving net zero of your carbon
climate change philanthropy, and most • Pipeline manufacturers capture project
• Direct Air Capture needs to be
climate philanthropy is focused on • Not off-setting your carbon tax cost vs
in a very low atmospheric
adaptation not mitigation carbon capture project cost
concentrations
• Not achieving the required carbon
capture tonnage to continue having
your license to operate
• The dissemination of knowledge
regarding climate change and CCUS by
scientists is essential and has the
power for impacting society, which can
bring pressure on govts

• McKinsey report: https://www.mckinsey.com/business-functions/sustainability/our-insights/driving-co2-emissions-to-zero-and-beyond-with-carbon-capture-use-and-

storage
• MHIG: https://solutions.mhi.com/blog/what-is-needed-from-co2-transport-an-essential-element-of-the-ccus-value-chain/
• Student Energy: https://studentenergy.org/site/
• NOV: https://www.nov.com/products-and-services/capabilities/carbon-capture-utilization-and-storage-solutions

197
Soft Drinks
Industry
USA

198
Soft Drinks Key trends Revenues1 Costs2
• A large part of everyday purchase • USA Soft Drinks revenue (USD billions) • Little control over the manufacturer of
Industry, USA includes sngle grab-and-go products their raw materials and finished
Market rather than conventional bulk buying
porducts. •
product
Main expenditures are connected with
• Personal well – being, conscious raw materials and ingredients,
Overview3 consumption, naturalness, manufacturing, logistics, warehousing
• Revenue of Soft Drinks market transparency and sustainability, taste
in USA lied in top 5 across the variety and experiences are key major
globe ($318.5B) in 2022 factors for product development.
• In relation to total population • Rise in consumer disposable income has
fiugres, per person revenues of played an instrumental role in boosting
$0.95k are generate in 2022 the sales of soft drinks in the USA.
• The average volume per person • Generationally high raw materials
in the Soft Drinks segment is prices and soaring distribution costs are • Estimated Industry Revenues CAGR
expected to amount 208.84 L shaping the strategies of soft drinks (2018 - 2025): 5.1%
in 2022 suppliers and bottlers in 2022. • The global carbonated soft drinks
• Three barriers: brands, bottling and market size was valued at 221.6 USD
distribution capabilities, and billion (2020)
distribution capabilities, and shelf
space.

Value chain

Raw Material
R&D & Design Production Storage Marketing Distribution
assembling

Costs High Low to medium Medium Medium High Medium

1. https://www.statista.com/outlook/cmo/non-alcoholic-drinks/soft-drinks/united-states#revenue
2. https://finance.yahoo.com/news/understanding-value-chain-soft-drink-130044305.html
3. https://www.grandviewresearch.com/industry-analysis/us-soft-drinks-market#:~:text=Rise%20in%20consumer%20disposable%20income,an%20upthrust%20to%20the%20market.

199
Soft Drinks Competitors Customers Suppliers
Key Players: • Key importers of Soft Drinks: • Key inputs:
Industry, USA • The shares of these 3 companies – USA (largest importer): $1.1B (23.2%) – Water or mineral water
Market has remained nearly the same since
2008 with a deviation of 2%- 5%.
– United Kingdom: $733.4M (15.73%) – Sugar, aromas, and essences
• Consumer Trends: Per capita soft drink – Usually contain carbon dioxide
consumption is estimated to decline at • Trends in supplier services:
Corona Impact Coca- Cola Pepsi Co an annualized rate of 0.8%. – Firms can switch between suppliers very
• Revenue of Soft Drinks market Dr Pepper Others • Marketing channels: quickly and easily.
in USA lied in top 5 across the – Ad campaigns across multiple – The number of equipment suppliers is not in
globe ($318.5B) in 2022 mediums and channels, including TV,
8% short supply. This takes away much of
• In relation to total population online ads etc. suppliers’ bargaining power.
fiugres, per person revenues of 21% – Sponsorships like NASCAR, NBA etc. • Key suppliers:
$0.95k are generate in 2022 45%
• Distribution Channels: – Direct spend suppliers include ingredients and
• The average volume per person – Supermarkets (48%) packaging suppliers.
in the Soft Drinks segment is
26% – Food Stations & Drinking Places (20%) – Indirect spend suppliers include categories
expected to amount 208.84 L such as IT, production equipment, personnel,
in 2022 – Convenience Stores (12%)
temporary labor, consultancy services etc.
– AVMs (11%)
• Order size:
– Mainly in bulks, Advance orders

Key risks Sources

• Political • Statista
– Sugar tax has raised the level of awareness. • Tridge
– Many district schools are banning & taking soft drinks off cafeteria menus (Like in Oakland & Los Angeles • Ibis World
targeting the causes of obesity).
• Economical
– Govt. has to spend billions on the treatment of obesity and its related ill-health.
– Direct contribution of the soft drinks industry to GDP could decline by millions once the levy is introduced.
• Social
– High consumption of caffeine has been associated with adverse effects on health including anxiety, restlessness,
aggression, headaches, and depression.
– Consumption of soft drinks with high sugar content and acidity can contribute to detrimental oral health and may
also affect general health including dental caries, dental erosion, overweight, obesity and increased risk of type
2 diabetes.
200
Airline Industry
Singapore

201
Airline Industry in Key trends1,2 Revenues3 Costs3
• Asia-Pacific region fastest growing in Drivers • Drivers
Singapore the world for airline activity • Passenger fares • Airline industry is capital
• Enabling friction-less travel with • Mail and Cargo charges and labor intensive industry.
Overview biometrics • Fuel costs are volatile and
• Meals/alcohols in flights
Number of passengers carried by • Humanizing experience through can range anywhere from
• Merchandise in flights such as jewelries, clothes,
the Singapore Airlines Group from artificial intelligence 20% to 40% of the total cost
caps, cups, keychains, electronic devices, etc.
fiscal year 2014 to 2022 (in • Robotic revolution and automation for an airline.
millions)4 • In flight entertainment including Wifi access
• Seamless data sharing via blockchain • Labor is typically unionized
• Extra baggage and pilots have few
• Travelling in Augmented/Virtual Reality
36,1 35,8
• Seat upgrades substitutes
33,66 • Supersonic jets could cut flight times
Number of passengers carried in

29,31 30,41
31,6 • Equipment is around 10% of
by half Total revenue of the Singapore Airlines Group from the total cost
• Sustainable fuel sources are taking fiscal year 2015 to 2022 (in billion Singapore
• Some airlines lease planes
millions

precedence dollars)4
rather than buy
• Autonomous aircraft can revolutionize 16,32
15,81 15,98
cargo delivery 15,23 14,87

Revenue in billion
Singapore dollars
3,89
0,6
• Predictive maintenance can help
7,62
reduce costs 3,82

2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Passenger load factor of Singapore
Airlines from fiscal year 2014 to
20224
81,1% 83,1% 81,9%
Value chain
78,5% 79,6% 79%

Aircraft purchase or
Operations Marketing and Sales Services
Passenger load factor

lease

30,1% Costs High High Low Low

13,3%

1. https://www.wns.com/perspectives/articles/articledetail/598/top-trends-for-the-global-airline-industry
2. https://explodingtopics.com/blog/airline-industry-trends
3. Kellog Consulting Book 2016
4. https://www.statista.com/study/67007/aviation-industry-in-singapore/
202
Airline Industry in Threats to the industry1 Customers2 Suppliers3
• Virus pandemics • Old Travelers − They are aged • Airbus
Singapore • Fuel price volatility customers probably retired and go on
holidays frequently.
• Global instability and the threat of war
Corona Impact • Business Travelers − They are
• Staff shortages and changing
• With the lockdown of many frequent flyers and form a large
demographics
places across the globe, airline segment.
• Airport capacity issues
industry was the hardest hit. • Budget Conscious Travelers − They • Boeing
• Uncertainty over business travel look for the most inexpensive airline
• From 35.8 million passengers in
2019, total passengers in 2020 • More people are getting more without knowing much about the
dropped to 600k. environmentally conscious different airline services.
• Revenue in 2019 was 15.98B • Loyal Travelers − They travel
SGD while 3.82B SGD in 2020. frequently and as they travel
frequently with the same airline, the
airline offers some benefits to them
and also the miles.
• Urgent Travelers − They share a small
market segment and do not fly
frequently. They fly only for
unexpected causes.

Similar industries Key risks

• Closest industries may include • Huge change in consumer demand/behavior
shipping, aerospace, trains, subways, • New restrictions/taxes on imported parts from different countries/continents
buses, etc.
• Pandemic that might limit supply chain globally & reliance on transportation
• New regulations from the government on manufacturing cars, i.e. C02 emissions…
• Heavily relied on machines and automation

1. https://www.flightworx.aero/blog/current-risks-and-threats-to-the-aviation-industry/
2. https://www.tutorialspoint.com/aviation_management/aviation_management_airline_marketing.htm
3. https://www.singaporeair.com/en_UK/us/flying-withus/our-story/our-fleet/
203
Healthcare
USA

204
Health Care Key trends3 Revenues Costs3
• The survey shows that one-third of US • Revenue is expected to show an annual • In 2019, U.S. spent about $3.8 trillion
adults had a telehealth visit in 2020 growth rate (GAGR 2022-2025) OF 17% on healthcare or about $11,000 per
• 63% of adults used telehealth as a • Because of the COVID-19 pandemic, person. The spending will balloon from
Overview preventative service, prescription U.S. healthcare system revenues 2020’s $4 trillion estimate to $8.3
refill, or routine visit for a chronic dropped by about 50%. However, by trillion by 2040. A main driver of these
USA EBITDA in the Health Care
illness 2024, different healthcare sectors are costs is healthcare technology
(millions)4
• 8 in 10 respondents said they would forecasted to earn the following • US healthcare providers and facilities
596
likely use telehealth in the future profits: Healthcare IT: $27.9 billion; spent $11.36 B on cloud-based
561 558 Distribution and pharmacies: $18.9 technologies in 2020—up 33.0% from
• Big tech firms like Google and Apple
billion; Payer: $116.6 billion; Provider: 2019, when they spent $8.55 B
are largely contributing to growth
$197.8 billion; Medtech: $72.1 billion; • The US healthcare industry is massive,
global Electronic Health Records
2019 2021 2025 Pharma: $169.9 billion with healthcare spending accounting
Market
• In the Health Care segment, the for over 19.7% of US GDP in 2020.
number of users is expected to amount
Projected spendings in USA between
to 79.5 M users by 2025
2020 and 2040 (trillion U.S. Dollars)5
• User penetration will be 21.0% in 2022
8
and is expected to hit 23.4% by 2025 6
4

2020 2028 2040

Value chain of pharmaceuticals

Main segments4
• Insurance companies
• Healthcare marketing Hospitals/
Raw Material Distribution
R&D & Design Manufacturer Wholesalers Pharmacies
• Pharmaceuticals supply Center
(Retailers)
• Healthcare tech
• Health administration Low to medium Low High Low Low Medium to high
• Others

205
Health Care Coronavirus impact1 Customers Suppliers
• How the industry was affected? • Key customer6 • Hardware suppliers9
– Direct: millions of lives lost and – Group, individual, government, ancillary, FBS – General medical: gloves, nursing
significant incremental cost to the • Marketing channels8 supplies, and pharmacy, etc
healthcare system – Specialty: foot and ankle,
– Multichannel marketing using videos, social
– Indirect: deferred or cancelled media, TV, radio, direct mail, content urology and ostomy, and
treatment on chronic and episodic marketing, web that connect with consumers anaesthesia
conditions leads to increase in the throughout their patient journey. – Administrative and office: office
severity of a patient’s symptoms, supplies, equipment, and
• Trends6
resulting in 7-11% more potential cost furniture
– The mix of overall payer profit pools: shift
– Long-term: increased anxiety and • Software suppliers10
toward government segments
depression -> additional spending
– Payers’ mix: substantial enrolment is expected – Next-generation cloud
• How is it dealing with impact? computing applications (Saas),
to move from Medicaid to individual and
– Develop virtual health offerings commercial markets etc
– Prioritize high-risk individuals – Sites of care: shift from high-cost acute and • Service suppliers:
– Predictive analytics post-acute sites towards lower-cost – hospitals, doctors, nurses, etc
– Integrate behavioural and physical freestanding and non-acute sites
health services

Key players Key risks11

• By country4 • Preparedness for pandemics
– China, United States, Japan, United Kingdom, Canada • Cyber risk using electronic healthcare records
• By companies (US)2 • Healthcare infections
– McKesson ($208.3 B) • Allegations of negligence induced by
– UnitedHealth Group ($201 B) telemedicine
– CVS Health ($184.7 B) • Violent Incidents in Hospitals
– AmerisourceBergen ($153.1 B) • Alarm Fatigue
– Cardinal Health ($129.9 B) • Healthcare reform/physician integration

1. McKinsey: Understanding the hidden costs of COVID-19’s potential impact on US healthcare https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/understanding-the-hidden-costs-of-covid-19s-potential-impact-on-us-healthcare
2. Zippia: 28 ASTONISHING US HEALTHCARE INDUSTRY STATISTICS [2022] https://www.zippia.com/advice/us-healthcare-industry-statistics/
3. Insider Intelligence: US Healthcare Industry in 2022: Analysis of the health sector, healthcare trends, & future of digital health https://www.insiderintelligence.com/insights/healthcare-industry/
4. Statista: Health Care https://www.statista.com/outlook/dmo/ecommerce/beauty-health-personal-household-care/health-care/worldwide#global-comparison
5. Policy Advice: The State of Healthcare Industry – Statistics for 2022 https://policyadvice.net/insurance/insights/healthcare-statistics/
6. McKinsey: The future of US healthcare: What’s next for the industry post-COVID-19 https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/the-future-of-us-healthcare-whats-next-for-the-industry-post-covid-19
7. McKinsey: The future of healthcare: Value creation through next-generation business model https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/the-future-of-healthcare-value-creation-through-next-generation-business-models
8. CMG Health Marketing: The Importance of Multichannel Marketing in Healthcare https://www.coxhealthmarketing.com/news/the-importance-of-multichannel-marketing
9. biz2credit: 5 Largest Medical Supply Distributors https://www.biz2credit.com/blog/5-largest-medical-supply-distributors/
10. Fortune Business Insight: Healthcare Supply Chain Management Market https://www.fortunebusinessinsights.com/industry-reports/healthcare-supply-chain-management-market-101051
11. Risk & Insurance: 11 Critical Risks Facing the Healthcare Industry https://riskandinsurance.com/11-critical-risks-facing-the-healthcare-industry/

206
Pharmaceutical
Industry
Europe

207
European Key trends2 Revenues1 Costs
Increase uses of generics & biosimilars • Prescription drugs accounted largest • FC: R & D, plant, machines tool &
Pharmaceutical • Downward price pressure on branded revenue share attributed to health care equipment
Industry biologics. Companies invested in
innovative treatments to justify high
insurances provides 100%
reimbursement
• VC: materials, marketing,
manufacturing, distribution, royalties
Overview1 prices. • OTC segment expected to expand
Changes to national reimbursement & rapidly due to improved consumer
Major contributor to the EU knowledge and wider accessibility
economy: pricing processes
• Serves public health and acts • Faster reimbursement to patients 15%
as a driver of job creation, increases sales but put pressure on
trade and science. price by changes to price negotiation
frameworks, and international price
• Global market share of 23.4% transparency
Collaboration of small EU countries led to 85%
expedition of consultation, submission, and
Prescription OTC
negotiation processes of new & current
drugs. However, companies face pricing
pressures from sharing price information &
• Value 2020 $282.75 bn
boost negotiating power.
• 5.4% CAGR of (2021-2028)

Key drivers
Increasing healthcare Value chain
expenditure, surge in R&D
investments, emergence of
biologics & biosimilars Dispensing to
R&D Raw material Marketing
Manufacturing Distribution pharmacies and
innovation API registration
users

208
European Competitors Customers Suppliers
• Innovative in-vitro diagnostics • High R&D spend on immunology & • Supplier Network Collaboration (SNC);
Pharmaceutical • Collaboration and partnerships Big neurobiology research Pfizer and selected partners will
Industry players acquiring small players through
merger and JVs
• Marketing channels – B2B (Hospitals and
Vendors); On average, ~1/3rd of the
collaborate via the SNC Web Portal,
responding to demand and supply
information or via Business to Business
Corona Impact • Key competitors retail price of a medicine reverts to
distributors (pharmacists and (B2B) integration, by exchanging XML
• Declined drug sales shortage wholesalers) and the State or EDI messages
of drugs due disrupted supply
chains • Trends – Medicine consumption
contributes the least for the overall
• Generic segment projected health expenditure. ~18.6% of total
fastest growth health expenditure in Europe
• Unified EUROPEAN ACCESS • N. America remains largest trading
PORTAL - will be operated by partner for EU
IQVIA on behalf of industry
stakeholders including EFPIA

Key risks
• Inflationary pressure
• Brexit
• Russia- Ukraine Conflict
• Supply chain disruption
• Fragmented market leading to parallel
trade estimated to amount to € 6,070
million

1. Grand View Research

2. Blue Matter Consulting
3. addressing-patient-access-inequalities-in-europe.pdf (efpia.eu)

209
Supermarkets
USA (Core)

210
Supermarkets in Key trends3 Revenues Costs5
• Consumers have become more focused Projected revenue of “supermarkets and • Main expenditures include rent or
the U.S. (core) on shopping for the best value in an other grocery stores” in the U.S. (billions mortgage; attorney fees (for leases,
effort to stretch their dollars due to of USD)4 permits, etc.); taxes; insurance;
Overview continued uncertainty around the equipment; cash registers; shopping
pandemic and grocery inflation the carts; shelving; labor; and the
Annual supermarkets and other
highest it has been in 10 years. wholesale cost of the products sold in
grocery store sales (billions of
• The emergence of younger, value- the supermarkets.
USD)1
conscious, and healthier eater in 2022
creates opportunities for grocers to
tailor their value-priced private-label
products to include healthier
offerings.
• Customer preference for online and
delivery orders increased by 50%
during the pandemic and is expected to
rise further in 2022.
• The emergence of socially conscious
consumers is compelling F500
U.S. supermarket sales by companies to act.
product category in 2016
(millions of USD)2

Value chain

Outbound Logistics
Inbound Logistics Operations (Distribution Marketing Sales Service
Centers)

Costs Low Medium Medium to High Medium to High Medium to High

Mature markets: US, Canada, 1. https://www.statista.com/statistics/197626/annual-supermarket-and-other-grocery-store-sales-in-the-us-since-1992/
2. https://statinvestor.com/data/28111/us-supermarket-sales-by-product-category/
Japan, S Korea, Australia, New 3. https://www.mckinsey.com/industries/retail/our-insights/the-state-of-grocery-in-north-america-2022
Zealand, Western Europe 4. https://www.statista.com/forecasts/311107/supermarkets-and-other-grocery-stores-revenue-in-the-us
5. https://thegrocerystoreguy.com/is-owning-a-grocery-store-profitable/

211
Supermarkets in Threats to the industry Customers Suppliers1
• Low priced competitors forced many • According to a 2019 analysis, 42% of • Supermarket retailers race to slash
the U.S. (core) chains to downsize the supermarket customers are in the prices in order to lure consumers,
• recession and inflation affect the sales 24-35 age group, while 35% are which puts pressure on suppliers to
tremendously between 35-50 years old. make up the difference by cutting
• Marketing channels: costs and reducing payments to
• Consumers’ behavior is changing. They
workers and small-scale producers.
expect to see more ESG element and – Personalized in-store ads & point of
omnichannel. Purchasing online is sale • According to a 2015 research, US
expected to be as satisfying as doing supermarkets captured 46.9% of the
– Seasonal campaigns
shopping in stores. value created across a sample basket
– Newspapers & magazines of food products sourced from around
• Partnership becomes more and more
– Social media the world; whereas only averagely 5.9%
common in the face of new
– Email of value on reached the small-scale
competitors like discounters entering
farmers and workers.
the markets. • Distribution Channels:
– Online
– In-store

Similar industries Key risks2

• Grocery stores are similar except that • Food storage and contaminated products: In the past, scares like the ‘mad cow
supermarkets are generally larger and disease’ outbreak and “Hudson Beef” resulted in a huge loss for the retailers. In some
carry a wider selection of products supermarkets that sell cooked food, they have to monitor how the food is made and
cooked, with strict quality control measures and standards.
• Spill and fall incident: Customer might slip and fall in the supermarket; also,
supermarkets should pay attention to outdoor areas as well, removing snow and ice
correctly in cold climates, and keep walkways and parking lots in good condition.
• Theft and robberies: Robberies can occur in any store. Usually, retail grocers don’t
have high-tech security systems as that of retailers that sell electronics or other
expensive goods. Additionally, self-checkout technologies that help customers save time
may also result in more instances of theft.

1. https://s3.amazonaws.com/oxfam-us/www/static/media/files/US_Supermarket_Supply_Chains_End_the_Human_Suffering_Behind_our_Food_report.pdf
2. https://www.propertycasualty360.com/2017/03/10/10-risks-supermarkets-face-as-the-industry-changes/

212
Cargo Shipping
Industry
Asia

213
Cargo Shipping Key trends Market Trend Costs5
• Congestion at major exporting ports Projected Asia Pacific cargo shipping • Capital intensive industry - CAPEX
Industry in Asia such as China increased by 30-40% due market size between 2020 to 2028 (in heavy
to COVID-19 dynamic zero policy.1 billion tons)7 • Main expenditures are connected with
Overview • Shipping rate surged with Asia to facilities and transportation (50%)
4,89 5,14 5,40
Global Shipping Container Market elsewhere being 8 to 14 times more 4,43 4,65 follow by actual shipment travel cost
($US billion)4 than the opposite direction.1 (20%) and Porting (20%).
15,3
9,6 • Alliances formed in 2017 have shown to
be effective. Holds rate steady despite
demand destruction.2 2020 2022 2024 2026 2028

• World trade openness index decreased

2021 2027 Maritime industry has cycle trends:
by 8.5% in 2020, compared to 2019.3
• Heavily dependent on the global import
Global shipping volume by region and export demands.
2015-2020 (millons tonnes)3 • Boom and bust cycle happens once
Africa
5 every 10 years. Closely correlate with
15
76
Import economic cycle.
Pacific
157 Export • Q1 is the traditional low season
211
EU
177
686
Asia
447
83
NA
112

Value chain
Top 5 Cargo Ship Company in
Asia (ships)6
Ship The
The ports 3PLs The carrier The shipper
COSCO 225 Manufacture warehouses
Wisdom Line 121
Costs High Medium High Low Low Medium
Pacific Basin 117

Pan Ocean 78
1. https://ihsmarkit.com/research-analysis/container-shipping-situation-worsens-due-to-congestion-delays.html
CDB Leasing 76 2. https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/shipping/091120-infographic-shipping-alliances-help-container-industry-boost-freight-rates-in-coronavirus-pandemic
3. https://unctadstat.unctad.org/EN/Infographics.html
4. https://www.prnewswire.com/news-releases/global-shipping-container-market-2022-to-2027---industry-trends-share-size-growth-opportunity-and-forecasts-301552030.html
5. https://finance.sina.com.cn/roll/2021-01-07/doc-iiznctkf0575681.shtml
Dominant markets in Asia: China, 6. https://pdf.dfcfw.com/pdf/H3_AP202111041526950389_1.pdf?1636015894000.pdf
7. https://www.fortunebusinessinsights.com/cargo-shipping-market-102045
Hong Kong SAR, Singapore, Japan,
South Korea. 214
Cargo Shipping Similar industries and threats Customers Suppliers
• Aitransport • Customer Segments: • Global Cargo Shipping Market Share, By
Industry in Asia – Rising market, thanks to the – Commercial: Mainly players in Cargo Type, 2020
popularisation of e-commerce energy, construction, commodities
Corona Impact – Pros: faster, better for perishable and assets markets sectors.
• Overall: products – Retailers: the suppliers of goods to
– The shipping trade – Cons: higher cost, high emissions both commercial clients and
contracted by 3.8% in the consumers
• Rail transport
first half of 2020, but – Consumers: when purchases any
– Due to the development of
maritime trade grew by 4.3% consumer goods. • Raw materials and services: fuel oil, lube
increasingly better connected rail
– The shipping industry also • Distribution Channels: oil, fresh water, paints, repair services,
corridors, it is destined to relieve
showed some resilience in crew, and maintenance (dry docking)
road transport of an enormous weight – Warehouse
responding to the crisis in coming years. • Key suppliers:
– Physical stores
caused by the epidemic, – Pros: delivery reliability and – Shipping container manufacturer:
with no significant – Direct distribution to client i.e.,
efficiency, low emissions CIMC (China), SINGAMAS (China), CXIC
disruptions to the logistics factories.
(China), CEC (China)
supply chain. – Cons: lack of rail corridors that
connect Asian countries – Ship manufacturer: Mitsubishi Heavy
• Stage 1: Pre-/early-Crisis. Industries (Japan), Daewoo (S.
• Shipping lines developed Korea), Imabari (Japan), China
blockchain technology, alliances, Shipbuilding Group (China)
and social training. – Providers of seafarers: Philippines,
• Stage 2: Crisis-in-Progression. Key risks Indonesia, China, India
• Political pressures, shareholder
intentions, and changing • Coronavirus impact on global trade
consumer behavior have pushed 1. Creating big concerns for the global supply chain recovery
“sustainability” front and center 2. Shortened trucking capacity, increased delivery time and transport costs
in the form of digitalization and
3. Affecting first-and-last mile operations
making green gains.
• The pandemic has changed consumers’ shopping habits, strengthening investment in
• Stage 3: Post-COVID-19-Era.
electronics, digitalization, and automation to increase efficiency and cost savings
• Container equipment (in the Asia
Pacific), “truck” and “truck” • The Russia-Ukraine conflict has created uncertainty in the financial market and global
1. https://www.mdpi.com/journal/jmse
driver were “insufficient”, an logistics (Energy price increase, trade volume decrease, port congestions continue) 2. https://www.fortunebusinessinsights.com/cargo-shipping-
market-102045
industry-wide challenge. • Increasing stringency of emissions regulations are expected to influence the market's growth 3. https://unctad.org/press-material/asia-expands-its-lead-
maritime-trade-and-business
• Supply chain security, cyber • Global trade tensions can restrain market growth 4. https://blog.bizvibe.com/blog/top-10-largest-shipping-
security, patient safety, drug • China x U.S made imports from China more expensive. Carriers have been compelled to container-manufacturers
safety, vaccine safety, and food relocate manufacturing facilities from China to South-East Asia and Eastern Europe
5. https://zeymarine.com/top-10-largest-shipbuilding-
companies-in-the-world-2022/
safety were issues requiring high
priority at this stage.
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