Strategic and well executed alliances can be game changers in business performance. See how we equipped our client with the tools to make the right decisions at the right stage to ensure they gain competitive advantage.
The following case study is representative of Strategy&’s experience in the energy and utilities sector.
Energy and utilities
An upstream oil and gas company operating in Asia was struggling with low growth because of insufficient new discoveries and developments, combined with a rising cost base associated with fields that were in decline and were producing more and more water.
In many instances of working with clients, we have seen evidence of the benefits of a pride-building capability. The manufacturing division of a major company significantly expanding its production needed to improve the reliability of its refineries, and viewed the performance of its front line as a key factor for success.
An upstream business unit of a national oil company recognised that different departments were not communicating or collaborating sufficiently on capital project delivery, leading to delays in new production.
Infrastructure and mining
In a post-Fukushima world, many of the enthusiastic plans for new nuclear projects have been canceled or, at a minimum, substantially delayed.
Our client, which primarily serves coal power generators, faced a unique set of market challenges driven by fossil fuel price and regulatory uncertainty.
In the years leading up to the 2008 financial crisis, natural gas prices had been volatile and, on average, high enough to advantage non-gas new plant builds.
In the face of rising coal prices through 2008, many U.S. coal producers grew through the mantra “more is better,” acquiring new sources and mines through bolt-on acquisitions.