Growth Strategy for Premium Switchgear Manufacturer Provides Strategic Direction and Sound Business Planning
The Challenge: A manufacturer of premium medium voltage switchgear needed to align stakeholders and present its Board of Directors with an actionable and prioritized growth strategy. The company engaged Blue Canyon to develop a strategic framework that included prioritizing global growth segments.
Assessment: Blue Canyon used a fact-based, data-driven approach and internal organizational assessments to develop an opportunity-fit framework that measured product applications, geographies, and prioritized each into segments. Some of the factors considered included: differentiated value, growth, global potential, profitability, and competitive landscape. Blue Canyon learned that the client was known for innovative niche products; however, some of those innovations had become commoditized and there were new areas that demanded R&D’s and sales’ attention. Additionally, in international markets, the clients traditional customers had very different needs and purchase habits.
Strategic Solution: Using its opportunity-fit framework, Blue Canyon identified five application clusters and four geographic clusters and made strategic recommendations for each. For example, the client had to allocate additional resources to take advantage of applications and geographies where growth could be optimized and reevaluate/potentially monetize some of the business assets that had become commoditized or offered less opportunity and fit. From a geographic perspective, Blue Canyon identified segments that required a deeper dive to determine if fit could be improved to take advantage of a good opportunity.
Results: Following the client team’s presentation of Blue Canyon’s strategic plan to its Board of Directors, the organization is now exploring the disposition of certain assets and reallocating resources and investment to high potential applications. On the international front, the client team will conduct deeper dive country assessments to better understand growth potential within specific segments.