Strategy Development

Industrials Manufacturer

The situation

The client, a niche industrials manufacturer, is the global leader by market share in a specialised commodity segment.  With global market size stagnating, the business was in need of a fresh strategy to continue growing revenue.   

Our client faced the following challenges:

  • Decline of turnover and profits over the past 3 years

  • Operating in a constrained market

  • Threat of new technologies

  • Impact of change in product mix limiting manufacturing capacity

The DBA involvement

 

We conducted a review of the business' current strategy, including:

  • A detailed analysis of financials, products, markets, competitors and technology trends

  • Comprehensive internal survey to identify strengths and weaknesses and tap into experience and creativity for potential solutions

  • Assessment of current manufacturing capacity and forecast of future capacity shortfalls

  • Identification and economic evaluation of capacity growth options

  • Sales and marketing review through customer surveys

  • Analysis of channels

  • Reviews of the management operating system and organisation structure

Key outcomes

DBA assisted our client to design a new strategy, transitioning from being purely a commodity manufacturer to a specialist solutions provider, leveraging new technology and opening up additional revenue streams.  

  • Development of a new vision & mission statement for context and direction for transition to a solutions provider

  • Strengths and weaknesses assessment

  • Identification of critical issues to resolve in order to align with the new vision

  • Recommendation of six capacity growth options to overcome capacity shortfalls over five years, with an increased NPV of approx. R100M

  • Short-, medium- and long-term recommendations to transform the marketing and distribution operating model