UNIVERSITY OF ENGINEERING & TECHNOLOGY , LAHORE ( Narowal Campus ) “ Department of Biomedical Engineering ” ‘ Assignment No.2 ’ Name : Registration No : Course Subject : Course Instructor : Date of Submission : Talha Ahsan 2018-BME-138 Entrepreneurship & Business Management Ms. Tanzeela 20-12-21 Page | 1 Table of Contents 1. Short Description: .................................................................................................................................. 3 2. External Analysis : .................................................................................................................................... 3 2.1 Analysis of business position : ........................................................................................................... 3 1. Threats of new entrants : ................................................................................................................ 3 2. Threats of substitutes : ................................................................................................................ 3 3. Intensity of competitive rivalry : ................................................................................................. 4 4. Bargaining power of suppliers : ................................................................................................... 4 5. Bargaining power of buyers : ....................................................................................................... 4 3. Internal Analysis : ..................................................................................................................................... 4 3.1 Financial Analysis : ............................................................................................................................. 4 3.2 Value Chain Analysis : ........................................................................................................................ 4 4. SWOT Analysis : ........................................................................................................................................ 5 Bibliography.................................................................................................................................................. 6 Page | 2 Question 1. Choose a company ( preferably SME ) that you know well or whose key data you have access to. Prepare an analysis of the company. Answer : Name of Company : Lamaa 1. Short Description: Businesses today prioritise growth, development, stability, and consolidation. However, the SME sector comes with its own set of obstacles. Maintaining sufficient money to stay up with the changing business landscape and capitalise on growth prospects, while also ensuring supply chain continuity, is a difficult balancing act. Working Capital Management has become more important than ever to guarantee that neither criterion is jeopardised. This is where we enter the picture. We provide you with Working Capital Management and other Financial Services so that you can concentrate completely on establishing and expanding your company.Lamaa is an Early Payment Discounting FinTech company focusing on Supply Chain Finance for SME’s. We empower you with Working Capital Management and other Financial Services, so you are able to focus solely on growing and expanding your business. Lamaa also serves as a marketplace for bills that cannot be funded by your treasury to be funded by banks, financial institutions, and individual investors. At a corporate level, I worked on 100+ live on the platform, 80000+ invoices, and a 1M transaction process. Company size : 2-10 employees Location : Riyadh Headquaters : Riyadh, Headquarters, SA 2. External Analysis : 2.1 Analysis of business position : 1. Threats of new entrants : Low brand loyalty in the current industry Current brand names are not well-known Low initial capital investment required Weak government regulations No threat of retaliation Proprietary technology is not required Access to suppliers and distribution channels is easy to obtain. 2. Threats of substitutes : Encouraging Innovations – promoting new creative solutions by other firms. Leveraging Technology – offer different technologies for increasing efficiency & efficacy. Digital Connectivity – offer number of people to open digital bank accounts. Page | 3 3. Intensity of competitive rivalry : Concentration of rivals – the more the competitors, the more intense the rivalry. Product Homogenity – organizations could provide similar services to be more competitive. Consumer’s demand & switching costs – other organizations could benefit with less investment with more robust legal frameworks. Brand loyalty – rivalry is high when customers have low brand loyalty. Networks effects – through network effects the value of a product or service increases as more people are using it. 4. Bargaining power of suppliers : Suppliers could threaten forward integration. Rivals purchase smaller quantity of suppliers product. 5. Bargaining power of buyers : Giving buyers more choices with lower prices. Higher returns. High product homogeneity. 3. Internal Analysis : 3.1 Financial Analysis : Lamaa has raised $5.5 million in two rounds of investment. Their most recent funding came from a Seed round on December 1, 2021. Three investors have contributed to Lamaa: Saudi Aramco Entrepreneurship Ventures, Raed Ventures, and Musaab Hakim. The lead investors, however, are Saudi Aramco Entrepreneurship Ventures and Raed Ventures. Among their contributions are:23000+ Small businesses helped. 800000+ Invoices proceed. 1M Transactions passed. 3.2 Value Chain Analysis : Lamaa enables complex algorithms to make decisions, allowing buyers to offer competitive invoice discount rates. There are no promissory notes or onerous documentation requirements. Decisions are made quickly, and you get the finances you need in a matter of hours. Lamaa acts as a middleman between you and the lender. We'll contact your client to encourage them to pay the invoice early – at a discount you're ready to provide! If the buyer is not interested, we seek finance from banks, financial institutions, and private investors. Almost every time, we are able to locate the funds you require. Page | 4 4. SWOT Analysis : SWOT Analysis Strengths Lamaa is actively using 28 technologies for its website, according to BuiltWith. These include Viewport Meta, IPhone / Mobile Compatible, and SPF. Lamaa provides financing solutions, such as supply chain finance and Buy Now Pay Later schemes, for small and medium enterprises. High returns for Corporate treasury, Family offices and Private investors. Necessary customization with a simple call. Minimal Risk Exposure. Short term investment. Robust Legal Framework. Advanced analytics & MIS by through AI/ML providing visibility across supply chains. Weakness Opportunities Launching B2B ( Buy Now Pay Later Plans ) inorder to expand the company into Egypt, UAE and Qatar in the next few months. It promotes a stronger foundation for other emerging local SMEs who use the platform for financing solutions. Continue to break new grounds in fin-tech space. Attract new customers through special offers. Weak government regulations. Access to suppliers and distribution channels is easy to obtain. Unpredictable trends and disruption. Rapid technological change. Hacking/lost of data. Breach of data/privacy issues. Competitors more able to diversify income streams. Threats Small number of employees. Limited number of technologies. Partnered with less companies. Page | 5 Bibliography https://lamaa.sa/ https://www.crunchbase.com/organization/lamaa/people https://www.marketingstudyguide.com/possible-swot-ideas-for-a-fintech-start-up/ https://www.investopedia.com/simulator/ https://www.slideshare.net/IBEFIndia/financial-services-april2017-75132283 https://corporatefinanceinstitute.com/resources/knowledge/strategy/threat-of-new-entrants/ http://fernfortuniversity.com/term-papers/porter5/analysis/927-discover-financial-services.php Page | 6
