Parts manufacturer portfolio/growth strategy
An industrial parts supplier was looking for opportunities to grow their business and continue their historical total shareholder return performance into the next decade. The company had two main business units that competed in distinct product markets and a third distribution market that supported both primary business units. Given historically high performance, the target operating improvement to maintain shareholder returns into the future was significant. At the same time, the growth trajectory in their traditional product markets was tapering and they could not see their way to the necessary growth.
Working with the senior leadership team, we analyzed company performance and macroeconomic trends to hypothesize a set of attractive growth markets. We used these to identify a set of strategic priorities that would be critical to shaping the strategy of the enterprise. Strategy& established and guided a set of internal client teams throughout market characterization and assessment of a range of potential growth opportunities. Based on team findings, we led the client through a re-definition of their future enterprise strategy. This involved identifying transformational acquisitions and divestitures to expand the related knowledge and capabilities needed to serve a new class of higher growth product and service sectors. The resultant strategy is expected to fulfill future financial goals, position the company for future growth, and enable their market success through increased focus on and development of a set of differentiating capabilities.