Due to slowing growth in its core business and excessive exposure to the distribution of one brand, a leading MENA-region family conglomerate was searching for diversification opportunities.
The company was seeking to expand its business to Turkey, and engaged Strategy& to help identify and assess specific opportunities in sectors adjacent to its core business and in other major industries in the Turkish market, and to produce a strategic road map for the company to follow.
The Strategy& team began by assessing relevant industries. For the industries selected, the team determined the strategic priorities, company capabilities, and the local market conditions and used these factors to map the expansion strategy. They evaluated the size and growth, profitability, level of competition, trends and dynamics, and fit with the client’s capabilities of the adjacent segments and other industries.
They singled out greenfield and acquisition opportunities for deep dive analyses. The team then developed the target portfolio, in light of the strategic priorities of the company, and identified the next steps for each opportunity.
Following approval of the target portfolio strategy, the company successfully entered the Turkish market through a joint venture with a local partner. It established a local office and started implementing the set initiatives over the subsequent 24-month period.
The company achieved its revenue growth and profitability objectives for its non-MENA portfolio.