SENWES Integrated Report 2020 | 页面 88

RISK TREND MARKET SIZE AND MARKET SHARE RISK Risk Events � Longest decline in equipment market size – black swan event. � Record April 2019 rainfall leading to significant crop quality issues – black swan event. � Loss in input sales due to surplus on-farm stock from smaller areas planted the previous year. � Aggressive and unsustainable market penetration strategies by competitors. Description The agricultural industry is highly competitive with regards to inputs, commodity production, equipment and retail business. The limited local diversification opportunities increase the exposure to strong competition. Mitigation and Control Senwes Grainlink’s continued investment in technology and infrastructure at its silos remains a focus area in order to increase market share by means of offering a more attractive value proposition to clients. Similar investments are made throughout the group in order to grow market share. Opportunities � Consolidation and/or expansion to achieve critical mass and market share growth. � Continuous research, innovation, evaluation and, where necessary, improvement of the group’s core activities and solutions, in order to maintain a competitive advantage and grow market share. Strategic focus areas triggered � Diversification, horizontal integration and consolidation. � Internal integration of the customer. � Increased investment in efficiencies within the value chain. � Externalisation. For more info on the group strategy see p. 44 The retail and equipment service offering remains under pressure due to a smaller market size. Senwes Equipment is, however, offering competitive financing solutions in order to maintain and grow its market share. 86 ROOTED IN AGRICULTURE