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| Engineering Company Growth Strategy
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Context / Scope of project
The Client had a fast-growing, niche business but felt that they had run out of room to expand in their existing market. The bulk of their revenue was generated from coal-related activities in one region, leaving them highly exposed to fluctuations in coal production. Believing that they had achieved a high market share in this growing but tightly defined market, perception was that growth potential in their core market was also capped. Based on this belief, the Client was keen to explore opportunities to grow their business outside their current sector and geography. They had already dedicated senior resources to identifying new opportunities - but with limited focus and limited holding to account - resulting in an ineffective scattergun approach. The PIP team helped to rapidly develop a growth strategy that leveraged the client’s core skills to open up new markets, and identified opportunities for further growth within their core markets.
Client achieved:
- Knowledge of market share in specific segments which highlighted opportunities to expand within their existing core through rigorous market share tracking.
- Five specific growth opportunities were identified.
- Business cases detailing steps required to develop each opportunity.
- Clear accountability for all steps outlined in the business cases.
- Focus on a few, high value (strategic and/or dollar) opportunities within their core skills or geography – stopped wasting resources chasing low value, high risk or low probability opportunities in an ad hoc fashion.
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What we did:
- Defined the client’s core market in terms of services and geography.
- Analysed market share and margin drivers by individual segment – showing that margin share was not as universally high as client believed and highlighting opportunities for growth in their core market.
- Focused client team on minimising the risk and costs of developing new markets by identifying opportunities that were either:
- Within their core market (same product, same geography)
- An existing product in a new geography
- A new product in their existing geography
- Prioritised opportunities based on their value and ease of implementation.
- Worked with client team members to develop detailed business cases and workplans for a select few opportunities.
- Implemented regular, structured review meetings between business cases owners and senior management.
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