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Industrial Goods Project
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BCG has worked with the client, now one of the world's largest and most profitable industrial goods companies, since it was a small, local player. Over the years, our relationship has involved projects across a wide spectrum of business issues and every continent.
This case took account of the client's highly profitable operations in its core American and European markets, but low growth potential in its overall portfolio. It had a modest presence in Asia, which was not as profitable as its core markets. At the same time, its major global competitors were aggressively expanding in Asia through acquisitions. The question for the client was whether or not to grow in Asia, and if so, where and how?
Our analysis showed that Asia offered long-term growth potential, but that the different stages of development in markets across the region required different approaches for successful growth. We recommended progressive expansion of the client's Asian businesses into a network of operations across key Asian markets, using a combination of organic growth, partnerships and acquisitions. These key markets were selected based on their individual attractiveness and potential to deliver network synergies. We also evaluated potential partners and acquisition targets in these markets.
Our work changed the way the client thinks about growth, revealed Asia's long-term potential as a growth platform for the business, and defined an important place for the region in the client's global portfolio. It also delivered an actionable plan to realise the full potential of the client's Asian markets over the longer term.
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Click on the image to read some more personal perspectives on the project.
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This was one of my most challenging and enjoyable assignments. The work, which was for one of BCG's most important global relationships, involved developing an Asian strategy in the context of the client's global portfolio.
I managed a team of six consultants, all with different tenures, experience and personalities. My first son was born during the assignment, just a few days before a very important client presentation. Last but not least, I had to return to the Army for my annual 2 weeks of reservist training, with a mobile phone my only connection with the outside world.
Despite all these complications, we developed a very compelling logic for growing in Asia. In the end, we changed the way the client's senior management thought about growth. We also developed a very clear roadmap for growth in Asia, complete with assessment of potential partners and acquisition targets in priority markets. When the project finished, we knew that we had strengthened our overall relationship with the client and would continue to be a trusted advisor.
Jeffrey, Manager in the Singapore office
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In this case, I helped shape our client's Asian agenda. To identify growth options across Asia, we leveraged existing information, interacted with country experts and conducted preliminary screenings of potential acquisition candidates. Our work was a crucial input into the development of our client's pan-Asian strategy. We then translated the strategy into a 'road map' (what to do, where and how) that is helping our client to realise its Asian objectives.
I was privileged to work with really talented clients, interacting regularly with corporate strategy think tanks, company M&A experts and senior management. Their market acumen and business knowledge, coupled with our fact-based, rigorous analysis, produced a compelling answer that our client put straight into action.
Almost every BCG case means working with exceptionally smart people who earn your respect and teach you a lot. This team had that and more: we worked hard, played hard and had fun. I'll always remember the weekly soccer games with clients, some of which produced 'Eureka!' moments of startling insight as we talked shop while playing football!
Dinesh, Project Leader in the Singapore office
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My task was to evaluate the demand and supply dynamics for the client's product in SEA, and to assess the implications of these for an Asian growth strategy. This involved many of the classic activities performed by BCG consultants:
- To gather the data I needed, I examined trade journals, newswires and competitor sites. I also travelled to each country to interview local trade associations and industry experts
- I used the gathered information to model future demand and supply, then validated the forecasts using other data sources. For example, I used data from other industries where products were reasonable proxies for those produced by our client.
- I discussed the analysis and emerging insights with the rest of the team and key client staff. Such discussions often generated new questions and hypotheses for further investigations.
The result was a high-potential growth strategy for the client and an interesting and rewarding experience for me as a consultant.
Sai Wing, Project Leader in the Singapore office
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