Market challenges and struggling subsidiary prompt the need for strategic options
A security appliances producer was facing difficult market conditions and dealing with a struggling subsidiary. Massive changes in demand and a lack of clarity about future market dynamics posed challenges. Additionally, the client’s subsidiary struggled to secure the best price for its products based on quality. Furthermore, detailed insights into the subsidiary’s situation were not available to the management teams at the company headquarters.
Our team aimed to understand the client’s positioning and market dynamics as a baseline for future strategic action.
Simulating market conditions for growth impact and profit optimization
We conducted a thorough investigation, including internal and external interviews and analyses, to understand market dynamics and determine key strategic implications.
Subsequently, we identified a price-value positioning for our client, illustrating their position in the market based on price and value offered. Both this positioning and the determination of price levels were derived from internal and external questionnaires.
Finally, we were able to determine the most profitable prices by combining insights from previous projects with a market simulation exercise.
Commercial excellence through transparency and knowledge
Our integrated project approach helped our client understand its price-value positioning in the market and provided recommendations on dealer terms and conditions to align with the future growth path. This has enabled the client to identify its competitive advantages and use those to convey value effectively to customers. We also found quick wins to improve margins in the short-term and ensure immediate project impact.
