The situation

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The client, a niche industrials manufacturer, is the global leader by market share in a specialised commodity segment.  With global market size stagnating, the business was in need of a fresh strategy to continue growing revenue.   

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Our client faced the following challenges:

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• Decline of turnover and profits over the past 3 years

• Operating in a constrained market

• Threat of new technologies

• Impact of change in product mix limiting manufacturing capacity

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The DBA involvement

 

We conducted a review of the business' current strategy, including:

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• A detailed analysis of financials, products, markets, competitors and technology trends

• Comprehensive internal survey to identify strengths and weaknesses and tap into experience and creativity for potential solutions

• Assessment of current manufacturing capacity and forecast of future capacity shortfalls

• Identification and economic evaluation of capacity growth options

• Sales and marketing review through customer surveys

• Analysis of channels

• Reviews of the management operating system and organisation structure

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Key outcomes

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DBA assisted our client to design a new strategy, transitioning from being purely a commodity manufacturer to a specialist solutions provider, leveraging new technology and opening up additional revenue streams.  

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• Development of a new vision & mission statement for context and direction for transition to a solutions provider

• Strengths and weaknesses assessment

• Identification of critical issues to resolve in order to align with the new vision

• Recommendation of six capacity growth options to overcome capacity shortfalls over five years, with an increased NPV of approx. R100M

• Short-, medium- and long-term recommendations to transform the marketing and distribution operating model