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Exploring Merger, Acquisition and Strategic Alliance Opportunities in Courier

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Since the courier business has been described as a business that involves much capital to be able to provide the necessary logistics that will avail seamless services, it is therefore desirable that operators pool resources together to be able to stand on a strong footing in their chosen business.
This view has been canvassed by some stakeholders in the courier business as a measure to stop the proliferation of mushroom courier houses in the country. They argue that it is not just enough to float a courier company by virtue of the fact that one is capable of paying the license fee. Some courier companies have closed shop soon after they were opened as a result of inadequate preparation and feasibility studies of what to expect in the business.
Agreed that we have as at the last count about 234 registered courier companies in Nigeria today, the important question is how many of these companies are viable and competing in the market? The clampdown often carried out by men of the Courier Regulatory Department (CRD) of Nipost, the regulatory body for the postal and courier sector in Nigeria,  is on some of these licensed and registered courier companies which actually may have got the operational licenses in the first  place but may overtime become incapable of renewing their licenses as required by the CRD guideline. Instead of closing down business totally, what some of them do is to still operate skeletal services which by so doing they flout the CRD rule.
In the global economy, partnership and collaboration are becoming the way out of the global economic downturn such that mergers and acquisitions have suddenly become common registers in the modern day business. The result of most mergers is that merged company always turns out to become stronger and better, every other thing being well taken care of. Resources, human and capital when put together in the right place will lead to a synergy. In the courier industry for instance, merger can lead to improved transit time, better return on investment and growth.
However, caution should be taken to prevent companies of unlike minds from coming together to do business.
In a very bad situation where a company has lost hope of surviving in business, such company can be acquired by a stronger one instead of allowing it to die completely. Some of the international players in the courier business like the FedEx Red Star, TNT/ IAS at some point in time embraced partnership opportunities when they came.
Mergers specifically must not be between or among local and international courier players. Indigenous firms that have like minds can also team up to become a commercial business model with competitive business strategies.
Globally , Deutshe Post, TNT Post Group, France’s La  Poste and Consignia often referred to as “the big four” are major postal enterprises at the change frontier which have expanded into courier, express and parcel and logistics with  laid down  multinational networks which became possible as a result of acquisitions and strategic alliances. They have now grown big and are in direct competition with global giants like the United Parcel Service and the FedEx.
 The integrated express industry   contributes significantly to the economic and social development of the country and other nations through its role in expanding international commerce and trade.  Our indigenous courier companies cannot continue to be underdogs in the access to global supply chains that are increasingly essential in economic competitiveness for individual businesses and nations. We have courier professionals in the country who can match their foreign counterparts entrepreneurially. Perhaps, what is lacking is trade liberalization, improved engineering and information technologies, and improved and cheaper air transportation. If all these factors are addressed, courier will definitely witness a higher growth than its estimated N10 billion current investment status.


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Shell to Sack 9,000 over Oil Output Drops

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Shell said on Wednesday that volumes of both Liquefied Natural Gas and crude production were down in the third quarter.

Shell to Sack 9,000 over Oil Output Drops

The oil major disclosed this in an update to the market, which also detailed plans to cut up to 9,000 jobs by the end of 2022 as it adjusts to the COVID-19 price collapse, according to S&P Global Platts.

Upstream production of oil and associated streams was significantly down in the quarter, in a range of 2.2 million to 2.3 million barrels of oil equivalent per day, from 2.6 million boe/d in Q3 2019.

LNG output was down in a range of 7.9 million to 8.3 million metric tonnes for the quarter, compared with nine million mt a year earlier.

In the update ahead of a full results statement on Oct. 29, Shell said its oil sales in July and August had reflected a 15-20 per cent discount to Brent pricing, similar to the second quarter, and its LNG business in the quarter had suffered a ‘significant impact’ from a lag effect in the oil-linked pricing of LNG.

It also highlighted refining weakness, with a utilisation level of just 64-68 per cent and margins “significantly lower” than in the second quarter 2020, and said it intended to reduce its refining footprint globally to less than 10 sites.

On its restructuring plans, Shell said, “Reduced organisational complexity, along with other measures, are expected to deliver sustainable annual cost savings of between $2.0bn to $2.5bn by 2022.

“This will partially contribute to the announced underlying operating cost reduction of $3bn to $4bn by the first quarter 2021.”

Worldwide job reductions of 7,000 to 9,000 are expected by the end of 2022, including 1,500 people who have agreed to take voluntary redundancy this year, Shell said.

It also said production levels in both the upstream business and the LNG business had been lower than in the second quarter, partly reflecting seasonal maintenance, but also the impact of hurricanes in the US Gulf of Mexico.

 

 

 

 

 


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Broadcasting

Netflix Moves Against Showmax with Cheaper Mobile only Subscription

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Netflix Inc, American Technology and Media service giant, has concluded plans to introduce cheaper, mobile-only subscription in Nigeria and the rest of Africa in order to strengthen its presence in the country and the region as a whole.

Netflix Moves Against Showmax with Cheaper Mobile only Subscription

This is seen as a move targeted at Showmax’s dominance in the continent.

This is in addition to commissioning more locally produced contents and shows that depict the cultures and experiences of ordinary Africans.

Netflix Inc. became the world’s largest subscription-streaming service by flooding the market with popular content that’s cheaper than the competition.

However, five years after it got introduced in Africa, the US company is struggling to grow beyond the wealthiest segment of the population, in a continent held back by poverty, piracy and limited access to broadband.

This is expected to greatly increase the competition for the African market with Showmax, the Multichoice subsidiary, which seems to be clearly ahead and has the majority of the market share because of its more local and African content.

It could also help increase its presence in the continent where it is struggling and is still a relatively small player.

According to Digital TV Research, the streaming service firm has only 1.4 million subscribers when compared to about 20 million customers that have been signed up to Multichoice Group Ltd, the leading African pay-TV firm.

With the rapid expansion of 4G mobile networks, the streaming service is given a new channel to get to audiences especially in a country like Nigeria, sub-Saharan Africa’s biggest economy and the heart of its TV industry.

Netflix plans to expand the mobile-only contracts permanently if the trials, which began in South Africa and Egypt, becomes a success.

It agreed to deals with South African wireless carriers to add subscriptions to people’s phone bills and offers pre-paid vouchers for those without bank accounts.

This is similar to the services that have been adopted by ShowMax, MultiChoice’s streaming service.

Netflix is offering subscribers N1,200 ($2.65) a month for its mobile-only service, well below the N2,900 it’s been charging for its most basic account. However, the offer is still more expensive than the N250 per month charged by Iroko TV, a streaming platform that has the largest online catalogue of Nigerian Nollywood content giving access to over 5,000 of such movies.

But the income from Iroko’s low-price plans hasn’t been enough to cover its costs and the company is now scaling back its African operation to focus on wealthier viewers in the diaspora.

Netflix’s has moved to avoid the low production values found in a lot of Nollywood output and channel the continent’s best talent to develop slickly-made shows across every genre just like its deal with well-funded producers like Nigeria’s EbonyLife TV.

 

 

 

 


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E-Business

Samsung Launches the Incredible Crystal UHD TV

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TV has become a massive part of our lives from those must-watch series to the sports matches that have us glued to the screen. World-renowned for pioneering innovation in this popular category of technology, Samsung has now launched Crystal UHD TV.

Featuring Samsung’s cutting-edge Crystal Display, the new Crystal UHD TV will bring high-resolution content to life in a whole new way, delivering a viewing experience like never before in a mainstream UHD TV.

Controling all function with Voice Assistant and enjoying multiple contents on one screen with Multi View are just some of the welcome advancements on this incredible TV.

“Samsung TV has been constantly paving the path for technological innovations by offering consumers a new TV experience and a future for global TV industry. This is the core driving force that makes Samsung No. 1 TV for 14 consecutive years. Crystal UHD builds on this success in ways that people will truly love.” said Dudu Mokholo, Chief Marketing Officer at Samsung Central Africa.

Crystal UHD is the purest form of picture quality with 1 billion rich and vibrant colours with guaranteed crisp and vivid images time over time. Its features include:

Real 4K UHD Resolution – 4K UHD TV goes beyond regular FHD with 4x more pixels, offering your eyes the sharp and crisp images they deserve. See it like you’re really in the scene.

Lifelike colour expression – Immerse yourself in the picture with a wider range of colour. Dynamic Crystal Display delivers lifelike variations so you can see every subtlety.

Crystal Processor 4K – Experience picture quality that moves you, made possible by a single chip that orchestrates colour, optimises high contrast ratio, and masters HDR.

See the picture, not the TV – A sleek and elegant design that draws you to the purest picture. Crafted with an effortless minimalistic style from every angle and a boundless that sets new standards. You will see only the most immersive cinematic experience ever.

Get what you want just by speaking up – Everything is so much easier with voice control. Now you can quickly access favourite content, get answers, and even control your TV and other connected devices around your home. Just tell it what you want.

See multiple contents at the same time – Multi View splits your TV screen in two, putting the content you’re watching on one side, and mirroring your mobile screen on the other. This means you don’t have to look away from the TV screen to glance at your phone anymore.

Get gaming faster – Get into the game faster with Game Enhancer, which optimises your screen so you have more control with barely noticeable input lag. Experience smooth gaming in its most impressive form without motion blur and judder.

Decorate your space with your favourite photos  – When you project your favourite photos onto the TV screen, the TV itself blends into your décor elegantly. You can lay out multiple photos in a beautiful collage or place them in a slide show for to keep the visual fresh and on point.

Clean up the clutter – Samsung UHD offers a neat solution for keeping all your TV cables tidy, hiding them away right in the stand. This helps you reduce your clutter so you can fully enjoy your TV’s beautiful design.

Samsung Crystal UHD clearly does what many TVs cannot, in the most amazing ways.

The Crystal UHD TV is now available at various retailer stores and retailer online pages. For extra peace of mind, Crystal UHD TV comes with a 24 month warranty.


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