How Freight Forwarder in Kuwait able to strengthen market share in Warehousing Segment

Background and Challenge
Client’s Background:
  • The client is one of the leading company of logistics headquartered in Kuwait. They manage ground transportation, air cargo, including charter flights, marine transportation, supply and commerce, export and import, and construction activities.
Challenges Faced by Client:
  • Difficulty in evaluating Demand and Supply gaps in the market: Ken Research was engaged by the client to undertake research on warehousing market along with some specific data points for Kuwait Warehousing coupled with understanding the current demand and supply gaps in the market.
  • Difficulties in accessing market trends: In addition, the client wanted assistance in understanding the market space in order to identify trends, challenges, growth driver along with the reasons why the warehousing market has been underdeveloped in the country.
Warehousing Industry at Glance:
  • The Kuwait warehousing industry is in the growing stage and is undergoing radical changes as warehouses are becoming increasingly sophisticated.
  • Government initiatives are expected to expand Kuwait’s warehousing capacity, presenting sizeable opportunities for warehousing and warehousing related value-added services.

Approach and Recommendations
Phase 1: To identify top Companies in the Market
  • Ken collaborated with its client in curating the list of major warehousing companies in the market providing storage services.
  • Ken Research approached to management of these companies to assess the current market framework, business potential, customer behavior and future growth in the sector space.
  • Ken Research also identified the reasons why land availability is low, classification of major warehousing space, as well as risks involved due to highly concentrated market.
  • These discussions gave the client possible opportunity windows to know-how of the warehousing market in Kuwait.
Phase 2: Key Analysis of Competition Benchmarking
  • The second phase of work focused on competitive landscape of the Warehousing Market for the client.
  • Deep Dive Competition Matrix was performed including various parameters such as prices charged, number of warehouses owned, location of warehouse, automation level, occupancy rate and others.
  • This helped the Client to see through the financial and operational benchmarking of the players in the Market with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Phase 3: Conclusion and Recommendations
  • After identifying and analyzing the competitive KPIs across the market, Ken Research also provided the Demand and Supply Gap in Kuwait Warehousing Market which included: Current Undersupply, Future Undersupply, Average Price, Occupancy Rate
  • Ken research also provided insights on Kuwait Warehousing Ecosystem, Land Availability in Kuwait, How Absence of FTZs and Logistics Park affects the industry, Risks involved in the market, Steps by Govt. to improve the warehousing industry.
  • By providing quality recommendations and success factors, Ken Research has provided a clear road map to the Client in order for efficient growth.
Result and Conclusions
Constructive Market Assessment
  • The competition specific market assessment will enable the Client to substantially develop their understanding about Warehousing Market in Kuwait.

Holistic Approach driven Competition Benchmarking
  • The client was well able to assess the competition scenario with operational and financial benchmarking in the market and formulate strategies on how they can penetrate in this space.

Roadmap to growth and efficiency
  • Client can now take informed decisions as the deliverable covered detailed recommendations with better understanding towards growth strategies, operational strategies, focus area in the warehousing space of Kuwait.

Business Impact
  • Validated hypothesis of Demand-Supply Gap and was able to build scalable business model canvas

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