Cost Leader or Service Leader?

Client Challenge

The parent company of a wholesale enterprise set challenging growth targets for its associated companies. In order to achieve the planned return on investment, our client, the Chairman of the Management of the wholesale company, pulled his management together in order to design the activities of the company, which lacked focus, more effectively and to align such activities with the market.

Mandat Intervention

  • We facilitated and designed a series of strategy workshops attended both by the officers of the company and by experts from the relevant functional departments. The cognitive progress was documented in each case and made available to the participants for further study.
  • Using consolidated market information, we analyzed the channels of distribution in the market, evaluated chances and risks, and compared the new insights with the current situation.
  • The initial fundamental strategic positioning was followed by a separate expansion of insights at the two divisions of the company.
  • The necessary implementation projects were drawn directly from the fundamental strategy in order to ensure that the planned results would actually materialize.

Results

  • There is a consensus among the management that both corporate divisions need to have separate fundamental strategies based on market requirements. One of the divisions follows the strategy of “performance leadership”, the other that of “cost leadership”.
  • The supervisory board of the company has approved the new direction.
  • The employees have been informed of the new basic strategies and the consequences thereof and are familiar with the corresponding action plans.
  • The management concentrates entirely on the implementation projects.

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