Industrial Gas Products Company Adjacent Market

Industrial Gas Company Identifies Adjacent Markets to Achieve Growth Goals

Challenge: An industrial company that supplies propellants, specialty gases, and alternative fuels was seeking new revenue sources through adjacent opportunities. While our client was a dominate player in their respective market, their traditional market’s growth had become stagnant and additional revenue sources from adjacent offerings were necessary to meet internal growth goals.

Assessment: Using Blue Canyon’s methodology for adjacent market assessment along with developing a deep understanding of the client’s capabilities and go-to-market strategy, we evaluated various options for adjacent applications, customers, and offerings. We identified the best opportunity for growth was through new offerings. We built and evaluated a list of over 70 alternative gases our client could potentially add to their portfolio. Narrowing down the list to the 16 gases that best aligned with our client’s capabilities, we evaluated the company’s value creation potential, the market’s accessibility, and the market’s attractiveness for each remaining gas. Triangulating these three metrics painted a clear picture of each gases’ strategic fit for our client.

Strategic Solution: Blue Canyon found three high purity gas offerings the client could add to their portfolio. Understanding higher purity gases have higher margins but also less demand, these markets were still large enough to hit our client’s growth goals, but not large enough to attract competition from commodity players that offered lower purity, higher volume gases at razor thin margins. In our final assessment of these three markets, we detailed key barriers to entry, success factors, and the client’s path to win for each gas offering.

Result: Through our rigorous and collaborative engagement process, we helped our client’s senior leadership make a confident decision regarding their next big strategic move. Due to our client’s anticipated strong positioning in the three identified adjacent high purity markets, as well as the markets’ competitive dynamics, our client is expected to increase their total revenue by over 10% assuming a modest 10% share of the accessible market.

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