Background
A leading company specializing in industrial kitchen design and appliances, with a focus on the foodservice industry, sought to explore growth opportunities by expanding on its product line and exploring new markets.
The client aims to expand its offering and increase its market share by tapping into new segments and extending its reach beyond the current markets. However, they faced the challenge of aligning their new products with market needs while ensuring operational scalability. Additionally, they needed to understand the growth opportunity quality; by assessing the market entry modes, long-term competitiveness and value differentiation.
Key leading questions
- How can the company align its new product offerings with market needs while ensuring operational scalability?
- What are the most promising growth opportunities in new market segments, and how can these be ranked in terms of feasibility, profitability, and long-term competitiveness?
- What go-to-market strategies should be developed to ensure successful market entry and expansion, and how can these strategies be effectively communicated and implemented by the company’s staff?
- What are the expected returns on investment for the identified growth opportunities over a 5-year period, and how can the company ensure sustainable competitive advantage in these new markets?
Our intervention
To support the client in assessing the growth opportunities and the respective Return on Investment, XPR outlined a plan to assess the market and the company capabilities, rank most performing growth opportunities, and evaluate modes of entry.
First, XPR conducted a situational analysis to understand the industry dynamics and the company capabilities. This analysis provided a comprehensive view of the client's current position on the market. Through workshop facilitation methodologies with the client team and using strategic choice framework, potential growth options were explored. Following this, each growth opportunities were assessed by analyzing the:
Feasibility
Is it worth taking on the opportunity?
Profitability
What is the expected ROI on a 5-year view?
Opportunity Quality
How likely is the client to take on the market and develop long-term competitiveness?
Each option was assessed through these dimensions, and three strategic alternatives were identified as the most promising. For each prioritized strategic option, a go-to-market (GTM) strategy was developed to ensure successful market entry for new products, and expansion within the new markets. Moreover, to effectively deliver the go-to-market strategies, coaching sessions were designed and delivered to the company's staff. This program aimed to help employees understand the company's strategic objectives and learn how to plan and implement these objectives effectively.
The strategic initiatives informed by this thorough analysis facilitated targeted product development and market entry strategies that were robust and aligned with the company's long-term goals. The approach will not only help diversify the company's product portfolio but also expand its geographical footprint.