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Case Example

Defining Entry Strategy for Medium Density Fibre Board (MDF) and Particle Board (PB) in India

Client Challenge

The client was a large Japanese business conglomerate in collaboration with a large Indian building products company having presence in various business areas such as furniture, sanitary ware, container glass, kitchen exhaust, cook tops and faucets in the B2C segment.

The management was looking to diversify into new business areas and explore business opportunities in the manufacturing of medium density fiber board (MDF) and particle board (PB). UC was asked to define a market entry strategy for the MDF & PB business in India

Our Approach

- To define an entry strategy, UC adopted the following approach:
- Understanding the strategic intent and rationale for entering MDF and PB business
- Worked with the core management and leadership team of client to analyze their internal capabilities and identify any resource constraints
- Assessed the current and future potential of the wood panels industry, specifically MDF and PB; with input from professionals from the industry
- Undertook a stakeholder analysis, based on identifying and profiling key customer segments and customer behavior, assessing key purchasing criteria and benchmarking competitors against various parameters
- Analysis of market and product dynamics
- Customer selection behavior analysis and competitor positioning analysis was conducted to analyze the client’s strengths and weaknesses on the key success factors and to identify capability gaps
- The pricing models for both raw and laminated boards were studied, followed by an analysis of the logistics dynamics
- Analyzing the different stages of regulatory compliance and the bodies involved in the sanctioning of these stages
- The market assessment illustrated the attractiveness of the engineered wood panel market in India for a new entrant with favorable opportunities and economics, which was concluded with the definition of an entry strategy for the client in the PB and MDF industry
- Designing entry strategy
- The entry strategy was defined based on sourcing and manufacturing strategy, product and customer segment strategy, pricing strategy, sales promotion strategy, channel strategy
- Entry strategy was supplemented with the identification and mitigation of operational, financial, technological and regulatory risks associated with the market

Our Impact

The client received a detailed entry strategy and an implementation plan was developed based on the market entry strategy for the client.

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