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The following example is typical of the services we provide:
A multi-national chemical company was engaged in manufacturing
and distributing a range of industrial products, using two
overlapping technologies. The company was the global leader
in Technology A - its major profit contributor, by far. Unfortunately,
this market was shrinking, largely as a result of increasingly
restrictive, environmental regulations. In Technology B, on
the other hand, the company was a small "2nd tier"
supplier in a growing market. In contrast, it was struggling
against fierce competition, particularly from a few, giant
multi-national competitors and cheap imports from Asia. Considering
its lack-lustre performance in Technology B, as well as the
long product development and selling cycles that are characteristic
of the industry, the company was deeply concerned about its
future and its strategic direction. In addition, it was under
pressure to find a solution that they could be incorporated
into the approaching, global strategic planning initiative
of its offshore parent.
Within a short space of time, we investigated the industry
attractiveness of both technologies, with particularly emphasis
on market forces, size and trends, and competition. Simultaneously,
we reviewed the company’s ability to compete, largely
in terms of marketing, manufacturing, and organization.
We concluded that the company had a low probability of succeeding
with Technology B. On the other hand, little had been
done to exploit its market position and its strengths in Technology
A. As a result, we worked with the company in developing
a new vision and strategic plan that concentrated on:
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Preparing a time-limited, "recovery"
plan for Technology B, and restricting investment until
success could be guaranteed. |
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Seeking diversification opportunities
in new, profitable technologies related to Technology
A (its strength). |
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Seeking strategic alliances with competitors,
in respect of marketing and manufacturing. |
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Revising the organization structure
to give more strength, in particular, to marketing activities. |
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