The analysis of a business venture and the development of business plans are cornerstones of our service offering. This includes feasibility study, market analysis, business audit and Due Diligence.
A feasibility study is prepared for investors and stakeholders to verify the credibility of their investment strategy. The study examines roadblocks to business success, identifying opportunities and obstacles that determine the viability of the venture. This follows a commercial approach with a solid understanding of key drivers. Specific elements of the feasibility study include:
Market analysis
Technology drivers needed to deliver strategic objectives
Business models and verification of viability
Regulatory conditions needed
Examining commercial, Marketing and Sales strategies
Human resources and structure
Financial projections and analysis, critical risk factors
Outlining possible exit strategies
The business case is an objective study of the opportunity, in the context of market and competition, and presents a forecasted assessment of returns and profitability. Eicon assists new entrants with business plan preparations, examining licensing and regulations which covers the following:
Market study, competition, and analysis
Market feasibility and opportunity Landscape
Subscriber forecast
Services and packages
Revenues & costs
P/L and financial indicators (IRR,NPV)
Cashflow, investment
Economic cost models define the Commercial and Finance cycles. As such, operators on a regular basis update commercial models of existing products and for new products.
Commercial models relate to volume (take-up rate), price, as well as actual and operational costs. For bundles, commercial justification must be valid, and costs are spread over revenue elements. Ultimately, justification of the launch of any product may not be only a function of financial return, but of market share and revenues.
Eicon develops cost models, bottom-up or top-down, for products that include broadband Internet, data, and voice.
Eicon supports clients undertaking investments in telecom by providing full due-diligence of their business venture, that include a review, validation, and recommendations for:
The business strategy
Business plans
Commercial plans
Marketing & sales strategy and policies
Regulations in place to support the business
Commercial delivery cycle
The process is supported by bench-marking against comparable markets. A 3-5 year business plan is prepared for financial valuation. Sensitivity analysis for performance scenarios depicting the upside/downside of the venture are also prepared. Technical due diligence follows:
A study of the network, the risks, its lifetime
An outline of operational costs
Projection of capex needed to continue with the planned business
Physical inspection of network assets
Audit of operational processes
High-level study of organization: structure, functions and staff capabilities.
As a result, clients benefit extensively from the ability to identify best-in-class performance, hence highlighting organisational risks and performance gaps in target companies.