abhishreshthaa

Abhijeet S
DynCorp International is a United States-based private military company (PMC) and aircraft maintenance company. DynCorp receives more than 96 percent of its $2 billion in annual revenues from the federal government.

The corporate headquarters are in Falls Church, Virginia. However, substantially all of the company's contracts are managed out of its office at Alliance Airport in Fort Worth, Texas.

The company has provided services for the U.S. military in several theaters, including Bolivia, Bosnia, Somalia, Angola, Haiti, Colombia, Kosovo and Kuwait.[4] DynCorp International also provided much of the security for Afghan interim president Hamid Karzai's presidential guard and trains much of Afghanistan's and Iraq's fledgling police force.[5] DynCorp was also hired to assist recovery in Louisiana and neighboring areas after Hurricane Katrina.[6][7] Recently, Dyncorp and the Department of State have been criticized for not properly accounting for $1.2 billion in contract task orders authorized by the State Department to be used to train Iraqi police.[8][9] DynCorp has held one contract on every round of competition since receiving the first Contract Field Teams contract in 1951. DynCorp won the LOGCAP II contract and is one of three contract holders on the current LOGCAP IV contract

Strengths

* Dominant position in Colombia
* Limited competition. There are few acquisition targets as the food retail sector in Colombia is highly informal (60% mom & pops)
* Diversification in formats and target customer
* Strong brand and format recognition - top of mind
* Geographical coverage
* Corporate governance
* Strategic alliance with foreign partner (Casino)provides exchanges of best practices
* Strong client base in loyalty program

Weaknesses

* Manageability with too many formats and brands
* Duplicated administrative structure with the acquisition of Carulla- Vivero
* Outdated stores in need of remodeling

Opportunities

* Strong economic environment in Colombia boosting the consumer sector
* Increasing purchasing power from families and easier access to credit should increase consumption of higher value-added non-food items
* Population is expected to migrate from shopping in informal to formal retail
* Small portion of the population with access to banking and credit services
* JV with Bancolombia to boost traffic to stores, ticket as well as increase ROE with the introduction of additional products such as insurance and personal
loans.
* Follow-on providing funds to accelerate further
expansion and store remodelings

Threats

* Improving consumer stance in Colombia is attracting
new entrants to the retail sector (Carrefour and Falabella from Chile)
* Brand repositioning could exclude some loyal customers
* Downturn in Colombia's economic stance could limit potential growth of the retail sector
* Diversification of business could divert focus
 
Back
Top