CUSTOMER CASES
Wholesaler
The company is losing money. After a strategic cost price analysis, it turns out that one division specifically is losing money hand over fist. Consequently, the question is raised whether this division can be transformed into profitability with a focused strategy. After careful further cost analysis, it turned out that this would not be feasible. The advise therefore is to liquidate the activities of this division.
Private label producer FMCG
This company is active in an extremely fast growing market. Its own turnover is growing even faster than that. The company faces trouble in scaling up as well as serious quality issues.
It is being managed on financial targets, without having a clear strategy or making sound strategic choices. Although the company is outperforming its peers for the time being, this seems to be a consequence of well performing R&D function as well as a high utilization of production capacity, which is not expected to last very long.
Private Label offers in this market are becoming more common and the company doesn’t have the scale to compete in a market which is becoming more and more international. It risks being overtaken by volume producers on one side and by highly specialized nich players on the other.
We defined a strategy focusing on new and fast growing niche segments. Product development will be reinforced and the commercial activities are being aligned into knowing the customers and markets and developing new business.
Despite slowing growth and rising costs, this resulted in a significant rise in EBITDA.
International FMCG producer
This supplier of food additives is driven by an untargeted ambition. As soon as a new product appears in the market it wants to compete with that as well. This resulted in a uncontrolled growth of offerings in various categories.
While its core product range was very competitive.
After a thorough market and competitive analysis, it was decided to dispose of non-core activities and to fully focus on its core strengths. With many new product introductions in this category in close cooperation with its customers.
Through this focus, the company became the undisputed market leader in its category with a very high growth in turnover and an even more stellar growth in EBITDA.