Client cases
Case stories - Strategy


Product strategy for an industrial company

The client's problem

A business unit of a large industrial conglomerate of Danish origin was unsure where to invest future R&D spend to meet market demands and close competitive gaps in the most profitable way. The client wanted a clear strategic roadmap for how to develop the different product lines over the next years. Some of the key dilemmas were: Investment in new versus existing products, standardisation versus customisation, and lead vs. stay at par with competitors.

Our approach

The client and Oleto Associates formed a joint team to perform three key analyses. First of all a better understanding of the existing product portfolio was needed, in terms of product lines, financial performance, and current development plans. Secondly a thorough market analysis was performed to identify spear heads and gaps for the products in comparison with competitors. Thirdly, interviews and research brought about some key trends for industry showing a decline of one product line in favour of another. The insights from this work was used to develop a prioritised roadmap which for each product indicated whether it should stay in the current form, incrementally improve, renew, or discontinue, including key features to advance.

Value delivered

The new product strategy enabled the company to reach its financial targets for the following 3 years and strengthen its long term market position.



Growth strategy and new operating model for leading supplier of spare parts and services

The client's problem

A global supplier of aviation spare parts had invested heavily in global processes and technology, but had not seen significant impact from the investments. The client wanted to explore opportunities to use the new global operating model to fuel growth, drive efficiency, and exploit the group leadership capacity better.


Our approach

A six month process was conducted to design the new global operating model structured around three phases. The first phase created a solid fact base to serve as the foundation for strategic decision making. Key facts included detailed revenue breakdown, business volumes, cost breakdown including key cost drivers, detailed breakdown of external spend, FTE overview linked to key activities, mapping of key processes and competitive knowledge. The second phase was focused on identifying significant cost saving levers and cost savings target as well as generating structural scenarios for how the business could potentially operate going forward. Each scenario was clearly linked to a value potential and a set of challenges to overcome during implementation. The third phase was focused on planning the transformation and change management to implement the chosen strategy.

Value delivered

20% in annual cost savings reached within 2 years, and strengthening the global leadership group.




Consolidation strategy for a major energy company

The client's problem

The power generation business in one of Europe’s major energy companies was established as a separate business area and needed a plan for how to streamline the business over a 3 year period.





Our approach

A strategy development plan was created to reach the desired targets over 4 months. Firstly, the entire business line was deeply analysed in terms of revenue, cost and FTE’s. This was mapped based on today’s situation and the forecasted change over time based on key market indications. Secondly, a strategic development plan was crafted for each functional area within the business unit, stating the top management focus area, sourcing model and FTE implications. Thirdly, the implementation roadmap was defined.

Value delivered

More than DKK 0.5 billion in savings were identified and the tools for a highly effective implementation was established. Today the business unit has turned highly successful.



Go-to-market strategy for a ground breaking innovation

The client's problem

A US based technology company wanted to find the best way to approach the market for a ground breaking innovation within the field of magnetics.






Our approach

The market strategy was developed in two parts. The first part included extensive research into the magnetics industry, e.g., analysis of the different industry players and key trends, estimation of the market size, growth rates and profit pools, and identification of potential deployment areas where the innovation could have an impact. The second part included targeting specific companies based on pre-agreed criteria, such as product differentiation, revenue potential and legal issues. 

Value delivered

A targeted go to market strategy has helped the company get its first set of customer and helped attract more investors to enable future growth.



International growth strategy for offshore service provider
 

The client's problem 

A large and complex multi service provider to the offshore energy sector was determined to improve its top line growth and profitability to further utilize its capabilities in key markets and wanted a clear roadmap for each major business line over a period of five years. Some of the key dilemmas included: Target current vs. new industries, maintain service portfolio vs. providing additional services, defend current geographical markets vs. entering new and acquire vs. organically grow.

Our approach

Oleto Associates formed a team to perform a 360 degree strategy review consisting of three overall stages. The first stage focused on developing a deep understanding of the client’s complex business including, e.g., financials, customer portfolio and dependencies, market share, market position compared to competitors and role in industry value chain. Several key customers were additionally interviewed to create both an inside out and outside in perspective. In the second stage, deep dive market attractiveness business cases were made for each business line, covering multiple geographical markets including analyses such as, e.g., industry trends, market segments, size and growth rate, competitive situation and profitability level per service type. Based on performed analyses, stage three focused on developing and evaluating several strategic scenarios the client could utilise to optimise its business. Subsequently investment plans and implementation roadmaps were created for each business line to facilitate rapid value capture. 

Value delivered

A clear and uniform anchored corporate strategy including detailed roadmaps for each business line focused on achieving profitable growth, a fact based view on market expansion opportunities (resulting in millions in savings) and an aligned leadership team dedicated to cross functional collaboration.


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