We collaborated with the CEO on a turnaround strategy that enabled the manufacturer to streamline operations and concentrate on its core businesses, using Bain’s Profit from the Core approach. Key steps included:
Focus on business strengths: A detailed review of Polymer Company's petrochemical sourcing strategy revealed that the company was under-producing in the region that generated 100% of its profits due to supply shortages. As a near-term fix, we helped management sign new supply agreements in that region. With an eye to strengthening its long-term competitive position, we mapped out a more profitable product mix by conducting surveys to better understand customer needs, and then pinpointing other markets where Polymer Company could win. Our analysis of each business unit also identified a major under-performer and some divestiture opportunities.
Expand using a repeatable formula: We quickly developed a roadmap for mid-term expansion opportunities based on core markets. There were several areas where Polymer Company could outgrow larger competitors, but only with a focused approach. We picked the areas to pursue aggressively and also defined guidelines around the business. That plan, developed by modeling likely market growth and competitors’ moves, was likely to yield more than $100 million over five to ten years.
Explore adjacency moves that anticipate redefining the core: For long-term growth, we mapped high-potential growth opportunities in adjacent areas. We led workshops to help management prioritize the options that offered the most strategic value.