DATE
April 2017
Telco diversification strategy to reverse EBITDA decline
A complete strategic overhaul, including new, non-core market entries and radical organizational restructuring for a quad-play European incumbent
Challenge
Client was an integrated incumbent also present in the media/TV market, and had already undergone successful, incremental transformation programs in the past, slowing down revenue decrease.
Nevertheless, growth prospects were negative and returns from the business were in decline, and in addition, the political and economic environment was rapidly deteriorating, further threatening the business.
Approach
Arthur D. Little assisted with a three-phase approach:
- Phase 1 – Strategic direction: Overall direction and development of high-level transformation program
- Phase 2 – Business scoping: Detailed implementation planning, including detailed business-case calculation
- Phase 3 – Implementation: Running the implementation program and a subsequent radical restructuring of the business.
Value
Over the course of less than 24 months, we returned the business to topline growth, entering new markets and segments, restored EBITDA levels to positive contributions (unlike much of the rest of the wider group, and against the prevailing industry trend within Europe), and succeeded in planning and triggering a reduction of organization and process costs through radical restructuring (-30-50% headcount).
Telco diversification strategy to reverse EBITDA decline
A complete strategic overhaul, including new, non-core market entries and radical organizational restructuring for a quad-play European incumbent
DATE
April 2017
Challenge
Client was an integrated incumbent also present in the media/TV market, and had already undergone successful, incremental transformation programs in the past, slowing down revenue decrease.
Nevertheless, growth prospects were negative and returns from the business were in decline, and in addition, the political and economic environment was rapidly deteriorating, further threatening the business.
Approach
Arthur D. Little assisted with a three-phase approach:
- Phase 1 – Strategic direction: Overall direction and development of high-level transformation program
- Phase 2 – Business scoping: Detailed implementation planning, including detailed business-case calculation
- Phase 3 – Implementation: Running the implementation program and a subsequent radical restructuring of the business.
Value
Over the course of less than 24 months, we returned the business to topline growth, entering new markets and segments, restored EBITDA levels to positive contributions (unlike much of the rest of the wider group, and against the prevailing industry trend within Europe), and succeeded in planning and triggering a reduction of organization and process costs through radical restructuring (-30-50% headcount).