Strategic Direction

Examples: Petrochemical Equipment, Oilfield Service, Medical Waste Disposal Equipment

Oilfield Service

This $300 million multi-national firm was in its "strategic planning cycle". We had assisted the firm for several years in many marketing related issues, and we were engaged to develop its strategic direction.

The process lasted about six months, and included participation of a "diagonal cross-section" of the firm, from all regions of the world.

This yielded entirely new market perspectives, segments, drivers and these changed the way the firm viewed itself and the role it played in bringing value to its customers. Consequently, all aspects of the firm changed to become significantly more competitive in the market. It had major gains in certain markets.

Today, the firms revenues are in excess of $800 Million!

Petrochemical Equipment

A petrochemical equipment manufacturer considered itself to be a small player in a "mature" market. Growth was dependent on the rising tide of market activity. The firm believed that next growth area would be an international market where a significant number of new petrochemical plants were being planned.

• An investigation of the customer behavior provided many insights:
  
• A majority of the available "margin" in the market was within the United States
  
• OEMs controlled this available margin, in the replacement market.
  
• Further investigation revealed that the incumbents took the replacement business for granted and would not compromise their entire installed base with a price war a small player
  
• Customers were willing to consider timely alternatives to OEMs.
  

This firm developed a new initiative on the "replacement" business, developing information technology processes to assure timely delivery. The market demand program was focused on ongoing operations in the United States, with a guarantee- on time or it’s free.

With this and several other programs, the firm’s revenues grew over 250% in about two years and margins about 400% during the same period.

Medical Waste Disposal Equipment

A product line was assigned to a client’s division by the corporate office. Investigation revealed that market dynamics had changed dramatically, and the original assumptions were no longer valid. Unfortunately, this product line would never be profitable because new, stronger players were offering services that replaced the product, and this product line was demoted in the value chain.

This product line is currently being divested.

More later!