AGP Support: Competitor Benchmarking, Venture Building, Innovation Scouting
Industry: Private Equity, Technology & Software
Industry: Private Equity, Technology & Software
China Innovation Benchmarking
Client
A European private equity firm wanted to support the growth of several portfolio companies that were building Internet platforms.
Situation
Many Chinese Internet platforms have established strong growth track records due to their willingness to take risks and diverge from traditional ways of conducting business. A European private equity investor believed that benchmarking successful Chinese platforms could yield valuable lessons about growth, business model design, user experience, and stakeholder management for their portfolio companies.
Approach
Asia Growth Partners began the benchmarking process by scanning for companies in markets similar to those of the investor’s portfolio companies. Three markets were selected for analysis over a 12-month period. In each market, two Chinese platforms were benchmarked. This involved using desktop research to map their businesses and then conducting expert interviews to fill data gaps and provide context about the logic behind certain business decisions.
The benchmarking exercise included several areas of the business, such as growth strategy, sales tactics, business process flows, offering portfolio, customer segments, user interfaces, user experience, and cash flows. Asia Growth Partners analyzed which elements of the assessment could serve as useful references for the client’s portfolio companies. The analysis also identified elements less likely to succeed in Europe due to differing market environments.
The benchmarking exercise included several areas of the business, such as growth strategy, sales tactics, business process flows, offering portfolio, customer segments, user interfaces, user experience, and cash flows. Asia Growth Partners analyzed which elements of the assessment could serve as useful references for the client’s portfolio companies. The analysis also identified elements less likely to succeed in Europe due to differing market environments.
- Scan the market for companies in markets similar to those of the portfolio companies.
- Conduct desktop research to map the business strategy, processes, portfolio, and economics.
- Interview experts to fill data gaps and provide context about the logic behind certain business decisions.
- Identify elements that are most likely to be useful references for the client’s portfolio companies.
Results
- 20 platform companies were prioritized for assessment across the three markets in scope. A detailed assessment was conducted for two companies in each target market.
- Several workshops were led for both the investor and the management teams of their portfolio companies to ensure that learnings were effectively transferred.
