Wellington Capital
Advisory
OTT Strategic Pivot
Project Focus
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Strategy formulation
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Implementation and in-market execution
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Integrated market projections and financial models
Project Duration
November to December 2020
Project Brief
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The company is a high-profile video streaming and content download provider in Indonesia, which is seeking to secure a dominant market presence by re-engineering the existing product and service offering and creating a differentiated approach both to content creation and end-user acquisition and engagement.
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As an integral part of SE Asia’s leading on-demand multi-service platform technology group - with a current valuation in excess of USD 10 Billion - the senior leadership team is seeking to leverage the established brand recognition and extensive market reach of the broader organization.
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The company’s lead investor gave WCA a mandate to create an actionable ‘pivot’ strategy - in collaboration with the existing management team - for their end-to-end product and service delivery platform.
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This imperative arose as a consequence of the emerging conditions within the market place, namely hyper growth rates, increasing competitive intensity, changing end-user behavior and rapid service evolution.
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The primary deliverable of the project from WCA was to develop a detailed implementation and operational plan (‘PlayBook’) to guide the leadership team in taking the agreed strategy both to the domestic market and to the global Indonesian Diaspora network.
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Associated with the creation of the ‘PlayBook’ was the requirement to build an integrated financial model (including detailed revenue and cost projections, cash flow estimates and forward funding requirements) for the period 2020 through 2024. This modelling initiative represented a ‘first’ in the company’s history since the formation in 2019.
WCA Value Creation
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WCA evaluated alternative strategic options by assessing a broad range of variables: industry dynamics, market trends, competitive environment, content partner preferences, target segment profiles, end user behaviour, and potential for product and service innovation.
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WCA identified the most favoured ‘pivot’ strategy and associated business model: based on desired market positioning, enterprise-wide competencies, service delivery platform capabilities, business partner network potential and the leverage of intra-company relationships.
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WCA formulated an operational plan to focus the leadership team on the “Vital Few” priorities: brand development, content acquisition, product and service differentiation, partner relationship management, demand generation, user engagement and sustainable monetization.
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WCA developed a detailed five-year financial model, coupled with key performance indicators, return-on-investment measurements, performance tracking and reporting guidelines and an outline framework for corporate governance.