 |
Case History 9903
A manufacturer of diversified industrial products seeks to create a new service business.
Senior business executives were looking to convert a high cost, technical support area into a profitable, stand-alone business. They thought that existing people and hardware resources could be combined with additional outside resources to create a unique and profitable service offering.
Problem
Relatively little was known about the many competitive
offerings in this business; competitive openings for a new
player; or about market needs for these types of services.
The company needed to further shape the business concept to
establish a strong competitive advantage in a very crowded
market.
Solution
Opinion leaders from widely diverse end-user markets were
assembled in back-to-back Summit conferences. The objective
was to understand the current and projected openings and
needs for services of the types imagined; and determine the
degree to which these needs were being satisfied by existing
players.
Outcome
Through close cooperation and an iterative learning process
with these leading companies, a unique service package and
market entry strategy came into focus. The market input and
business shaping process had converted the original hopes of
management into a commercially viable new
business.
Results
1.The Summit panelists, having in effect "designed" the new
company in ways that would best serve the needs of their own
firms, immediately requested direct contact with the
management team of the new company to explore both short and
long term services.
2.The new company received several requests for proposals from panelists within the first months following the initial Summit. The company now projects a high-profit business with annual revenues of $50 to $100 million.
