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.

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.

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Situation

  • 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).

Approach

  • 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.

Result

  • 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.

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