Assessing feasibly enables company to avoid losses, invest in high-return strategy
Mobile Co. is a retailer of mobile consumer electronics. Products and packaging are manufactured in Mainland China for retail in Greater China and other high-income consumer markets. Their products include a range of mobile devices and accessories.
The company was preparing to make a major investment in pass production of several product types in China. However, they had two concerns: 1) was their contract manufacturer capable and reliable and 2) was their plan feasible given in the Mainland China market given recent regulatory changes?
Our team addressed both challenges by carrying out due diligence on the local contract manufacturer and assessing recent regulations and their probable impact. We delivered our due diligence and feasibility assessment, respectively. Following this, we advised Mobile Co. on better opportunities for investment that would deliver returns in line with their target. Additionally, a more capable and reliable contract manufacturer was found.
Working with Mersol & Luo, Mobile Co. shifted investment to the manufacture and sale of products involving lower risk and returns in line with the company’s target. They also switched to a contract manufacturer with the proven capabilities and timely reliability required. This saved the company large sums in avoided losses and kept them on track to meet their annual revenue and profit margin targets.
Impact in 16 months
*We protect the confidentiality of our clients. Although the name has been changed, the results are real.