BUSI410: STRATEGIC MANAGEMENT

Date: 01/04/2020

Group Members:
Ngoma Landry Christian
Rocy Lalnunsangi Maury
Yves Turahimana

Project Draft 2

The INTRODUCTION of Project is in DRAFT 1

Our Expansion Strategy

For us to keep our identity and avoid loopholes that would be caused by lack of experience, we
chose to use the Standardisation strategy.
With this strategy, the outcomes are more predictable because we will be carrying out a more
familiar thing, that we have tools made for “sur-mesure” which will allow us to save time and
money.
This strategy is also the best considering that we are selling service. We don’t need to adjust the
service itself, but we will adjust the approach to customers (more precisely: the way we show them
that they are more valuable)

Our expansion destination

Our expansion destination is Africa and more precisely, we will start with Nigeria.

Why this destination?

➢ Currently, 6 of the world’s 10 fastest growing economies are in Africa

➢ 40% of the global population growth will be in Africa by 2050
➢ FDI inflows to Africa have increased by 13.6% and FDI outflows by 55.6% since 2010

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 ➢ The Doing Business 2013 Report ranks Mauritius, South Africa, Rwanda, Botswana, Ghana,
Tunisia and Namibia above China (the best performing BRIC country), while Morocco, Zambia,
Egypt, Kenya, Uganda, Ethiopia and Nigeria rank above India and Brazil

Then why Nigeria?

✓ Nigeria is among few countries allowing foreign investors to repatriate a 100% of their
dividends and allows 100% ownership of companies by foreigners except in gas and oil
industry
✓ Among the top three destinations for the Foreign direct investments in Africa (reaching 98.73
billion in 2016, a 3% increase from 2015) and these are our target for our services.
✓ 2.64% of World’s population, 7th most populous country in the World and first in Africa
✓ With the Nigerian businessman Aliko Dangote on the top of the Forbes richest Africans,
Nigeria got four in the top 20 (remember that Africa has 54 countries); and our business targets
big business personalities of course.

Our Entry mode

We are willing to enter Nigeria through a “Project based joint venture” that will be made with
Zenith Bank in which our name will appear only as the service name. It means that it will still be
Zenith Bank but offering its services plus Woorton services. (almost the same as Western Union
and La Banque Postale in France)

Why this Entry mode?

With this technique, our costs will be reduced, the time needed to research and study the market
will be shorter because we will use their already existing data, the trust from the population will be
easier to get because it is a local company (they already know it and are familiar) and the
requirements from the government will be fewer because it is not a totally new institution.

And why Zenith Bank?

We must admit that we are a financial institution and at some point, we offer some identical
services as banks (like financial advising, exchange of currencies, provision of liquidity) but in a
different form. So, we decided to partner with a company from the same sector and that is the
Banking sector.

In a survey commissioned by PricewaterhouseCoopers in conjunction with BusinessDay

Newspaper to determine the most respected companies and Chief Executives in Nigeria, Cadbury

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emerged first, followed by MTN and Nigeria Breweries. However, Zenith Bank emerged first
among the banks but fourth among all the companies in Nigeria.

So, considering that our target is the “Highest income earners” who engage in international and
diverse businesses and affairs, we thought that the most respected bank in the country is our best
fit

We couldn’t also ignore the fact that Zenith bank has had successful partnerships with Western
companies such as Facebook and Mastercard to Pioneer QR Payments on Facebook Messenger,
Commonwealth Enterprise and Investment Council (CWEIC) in expansion of Commonwealth
Network as it already settled in several English speaking West African nations

Plan of Action

• The first step is to organize a partnership with a local bank in Nigeria considered as a leader in
the banking local industry and in tune with our values (technology). Because their mission is to
build an institution reputed for its innovation and one of the first to open a digital banking with
an opening of information and communication technology infrastructure.

• The second step, thanks to our joint-venture with Zenith Bank, is to set up a good marketing
strategy to focus our top of the line and exclusive service for specific clients who already have
the habit to invest in securities and bonds or have a real capacity to invest in cryptocurrency.

Costs

• The marketing strategy used, has to be aligned to our standardisation strategy and therefore
optimize the costs as much as possible in this new entry in African market. The bank will provide
the necessary information and communication to customers through their digital infrastructure
but also during each appointment by giving our catalogs and through this way, make an
appointment with our specialist working within their department. That way, we don’t need to
spend a lot for marketing and other expenses such as the rent of an office, electricity, or
internet. If our partnership is a success, the bank will manage and use their commercial bankers
and marketing branches to attract as many clients as possible from their competitors.

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 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total Y1

Revenue in Billions €

Bitcoin 4.50 € 2.80 € 3.70 € 2.00 € 2.30 € 1.80 € 3.50 € 2.70 € 1.70 € 3.80 € 4.50 € 3.80 €

Ethereum 0.05 € 0.03 € 0.07 € 0.03 € 0.01 € 0.03 € 0.06 € 0.02 € 0.06 € 0.04 € 0.08 € 0.08 €
BitcoinCash 0.23 € 0.76 € 0.54 € 0.32 € 0.23 € 0.34 € 0.54 € 0.31 € 0.41 € 0.50 € 0.21 € 0.12 €

Total Revenue 4.78 € 3.59 € 4.31 € 2.35 € 2.54 € 2.17 € 4.10 € 3.03 € 2.17 € 4.34 € 4.79 € 4.00 € 42.17 €

Electricity and internet costs will be covered by Zenith Bank therefore Zenith's commission will be fixed, based on
profit margin and a bit higher than Wortoon's. (60% of profit margin for Zenith and 40% of profit margin for
Expenses Woorton)
Catalogs, flyers 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002 0.000002

Salary of our local specialist 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005 0.000005

Internet 0 0 0 0 0 0 0 0 0 0 0 0

Electricity 0 0 0 0 0 0 0 0 0 0 0 0

Administrative costs 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001 0.000001
Software adapted to Zenith
Bank 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004 0.000004

Total Expenses 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012 0.000012

Net revenue 4.779988 3.589988 4.304988 2.350988 2.541988 2.173988 4.099988 3.032988 2.169988 4.339988 4.784988 3.999988 10%

10% is our net profit margin from our net revenue of each sales of
cryptocurrencies per month
Profit Margin 0.4779988 0.3589988 0.4304988 0.2350988 0.2541988 0.2173988 0.4099988 0.3032988 0.2169988 0.4339988 0.4784988 0.3999988

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 • In addition if our partnership is a success, Zenith bank will make more efforts to attract more
clients through marketing strategy and our return of investment will be more significant in
volume because they will spend more in terms of energy and would like to have therefore
a bigger percentage, (60% of our profit margin, and Woorton 40%) but if it is not a success
we almost spent nothing in terms of expenses except for the monthly revenues of our
specialist in cryptocurrencies, catalogs and administrative costs.

The Timeline

BIBLIOGRAPHY

Guest Contributors, “Libra, Europe and the Race For Digital Currency Supremacy” Nasdaq. FEB
19, 2020 2:24PM EST. https://www.nasdaq.com/articles/libra-europe-and-the-race-for-digital-
currency-supremacy-2020-02-19

Olumide Adesina “Nigerians recount loses to crypto fraud” Nairametrics. March 22, 2020.
https://nairametrics.com/2020/03/22/nigerians-recount-loses-to-crypto-fraud/

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Lorraine Reategui, Managing Director, J.P. MORGAN; “6 Strategies for International Banking” JP
Morgan website. DEC 02, 2019. https://www.jpmorgan.com/commercial-banking/insights/6-
strategies-bank-globally
“Zenith Bank Partners Facebook and Mastercard to Pioneer QR Payments on Facebook
Messenger” Zenith Bank website. https://www.zenithbank.com/media/news/zenith-bank-
partners-with-facebook-and-mastercard/

Forbes Africa “The Forbes Billionaires List: Africa’s Billionaires 2020“ CNBC Africa website.
February 21, 2020. https://www.cnbcafrica.com/special-report/2020/02/21/the-forbes-
billionaires-list-africas-billionaires-2020/

“Why should I invest in Nigeria?” Embassy of Ireland in Nigeria. https://www.dfa.ie/irish-

embassy/nigeria/our-role/doing-business-in-nigeria/why-should-i-invest-in-nigeria/

“WHY DO BUSINESS IN AFRICA” GrowthAfrica website; accessed Apr 1, 2020.

https://growthafrica.com/advisory-services/business/why-do-business-in-africa/

Chamberline Moko “Le top 5 des banques nigérianes a réalisé un produit d’exploitation
bancaire en hausse de 51% à fin septembre 2017“ Agence Ecofin website. November 10, 2017
15:43. https://www.agenceecofin.com/banque/1011-51992-le-top-5-des-banques-nigerianes-a-
realise-un-produit-d-exploitation-bancaire-en-hausse-de-51-a-fin-septembre-2017

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