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Case study

New, high value income streams for a global speciality chemicals company

Strategy meeting

Our client, a leading global provider of speciality chemicals, was faced with slow growth and margin erosion in one of its core markets - water soluble polymers - and a resultant threat to the profitability of its US$200 million business unit.

We developed a pragmatic business strategy, the aim of which was to build revenues. It comprised the following key elements:

  • an understanding of the competitive benefits of the polymer system and the mapping of needs for water soluble polymers in oil and gas E&P
  • analysis of the competitive environment and selection of the best
  • the construction of market evolution scenarios and revenue projections

Our work changed the strategic focus of the company away from core areas to new, higher value margin performance driven products and the formation of dedicated business development teams. Our involvement generated an additional US$2.5 million in revenue (2004) and this is projected to rise to US$15-20 million by 2008.