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The Challenge:
A global specialty chemicals company
facing rapidly commoditizing markets
needed to significantly improve its
financial performance. The business
operated in a number of market sectors,
and needed to identify which sectors
to invest in, which sectors to maintain
its position, and in which to harvest.
The Approach:
Market Edge worked closely with the
global leadership and market sector
teams to determine the underlying
quality of each market, the drivers
for growth and long-term market trends.
Market Edge helped the teams map out
their current business models, and
develop understanding around how it
created value for customers and extracted
value for the company. The business
model was then assessed based on its
sustainability and its ability to
deliver the 5-year financial plan.
The Outcome:
Clear sector strategies were identified
and agreed at the end of the process.
New business models were developed
and aligned based on the underlying
quality of the market opportunities.
Through the process the teams gained
complete ownership of the strategies
and a deep understanding of Market
Edge strategy tools. Within two years
the business had doubled EBITDA and
EVA generation.
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