Growth strategy formulation for a global manufacturer of fluid handling and heat exchange equipment
The client was experiencing exceptional sales growth in energy, and expected this growth to continue, as a result of global trends and developments. However, the client was uncertain whether the current sales portfolio was appropriate to maximise growth opportunities, and required to understand the potential for further growth based on product/service development and/ or acquisition of adjacent technologies. It transpired as part of the work that the formulation of an ambition driven strategy was necessary to enable management to prioritise different product development and acquisition options, given capital and human resource constraints.
Joint development of an ambition-driven strategy for growth in the energy sector with top management, identifying key success factors and actions required to bridge gaps to the world leader position. Assessment of sales potential and market attractiveness in eight different energy segments, prioritise different growth options. Development of an integrated product development strategy and internal performance programme to meet the key success factors. Identification and assessment of suitable acquisition candidates, and formulation of an acquisition strategy to master the gaps that internal product/service development and/or performance improvement would not be able to cope.
Plans were developed to enhance product/service offerings with the aim of doubling sales within a five-year period. The strategy was successfully implemented, and as a result, market capitalisation has risen by more than 80 per cent within a period of nine months.