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Case Study

Sparkling results from glass company's new strategy

GlassCo's net income had tumbled to a loss. Bain helped the company develop a long-term strategy that allowed GlassCo to remain profitable and competitive in the marketplace. The client increased sales to its more profitable customers of its most profitable products and reduced its cost base.

  • min read

At a Glance

  • $9.2 million dollars in profit through three quarters of its fiscal year

The Full Story

The Situation

GlassCo's* net income had tumbled from $41 million to a loss of $3.5M over a three-year period. Its budget called for a loss of $3.5M the following year.

Most of the decline could be attributed to overcapacity in the stagnant industry and the resulting fall in prices.

GlassCo focused on driving volume growth to recoup the lost revenue, but the result of chasing more costly business was that GlassCo found itself with lower prices and a higher cost structure.

GlassCo brought in Bain to help the company turn around its recent poor performance and to develop a long-term strategy that would allow GlassCo to remain both profitable and competitive in the marketplace.

Our Approach

A detailed study of industry trends and company processes revealed four key areas for improvement.

 

Our Recommendations

Bain's analysis identified four key actions for GlassCo to take to address its declining profitability

 

The Results

GlassCo has increased sales to its more profitable customers and on its most profitable products and reduced its cost base. The result was a profit of $9.2 million through three quarters of its fiscal year compared to the previous full year's $3.5 million loss.

 

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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