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Competitive strategy following privatization
- A Latin American fixed-line carrier needed to prepare for aggressive competition following its privatization. Strategy& was retained to identify a clear strategic direction and develop a company-wide transformation program.
- Strategy& devised a structured approach to deliver practical, effective, and flexible actions by dividing the mission into two integrated work streams: Strategic positioning and transformation program. On the strategic side, we developed the strategic vision and footprint, looked into acquisitions and development of new business, and developed the business plan. On the transformation side, we devised a five-phase program whose effectiveness depended on the precise sequencing of the following actions: (1) Build a transitional organization and identify cost reduction opportunities, (2) identify productivity gains by function and optimize resources, (3) control costs and ensure flexibility of service offerings, (4) integrate supply/demand and reduce number of transactions, and (5) offer dynamic services and optimize contributions. Strategy&’s involvement led to a 70 percent share increase in LD market, cost reduction of 35 percent, increase in cash flows, and increase in total savings.
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