Strategy Development Case Study: Industrial / Consumer
Our client, a business unit of a leading conglomerate, wanted to understand which verticals to focus on in China.
- Industrial and consumer goods business unit of an American conglomerate with over US$150 billion in annual revenues.
- China sales growth lower than expected despite strong industry growth.
- Strong competition from increasingly sophisticated domestic Chinese companies and global competitors.
- Need to determine future potential of seven different vertical markets (Oil & Gas, Utilities, Process Manufacturing, Pulp & Paper, Transportation, Commercial Buildings, and Mining).
- Formed project team with cross-functional client representation.
- Created 5-year aggregate demand forecasts for each vertical.
- Narrowed down demand to market opportunities served by the client.
- Demand further segmented by product line, geography and customer type.
- Verticals ranked based on growth and profit potential.
- Exclusive information about potential client investment projects for the coming 2-3 years collected in database.
- Resources allocated to the verticals with the highest growth and profit making potential.
- Sales and marketing efforts aligned to drive sales growth in the most attractive segments of each vertical.
- Margins improved by a focus on projects where the client could best leverage its competitive advantages and avoid price competition.
- Client recommended to explore acquisitions of one or more advanced Chinese competitors in one product segment.
Our advisory services support clients when selling or buying a business, establishing joint ventures and partnerships, securing financing, valuing a business, or navigating other M&A related issues involving China and Southeast Asia.