In the rapidly changing telecommunications marketplace, NetworkCo* found itself without a new profit engine. NetworkCo had curtailed investment in its innovation pipeline, and was left without a new line of products to fuel sustained growth.
The combination of low-cost competitors and a consolidating customer base intensified NetworkCo's need for a clearly focused growth strategy.
Bain helped NetworkCo reprioritize its R&D investments, weeding out low-margin product lines and focusing investment in high-growth areas like mobile Internet solutions.
Bain developed an adjacency strategy, resulting in the acquisition of a promising new product line. Finally, Bain strengthened cost management to ensure that growth products hit cost targets.
NetworkCo has revitalized growth with the product strategy that we helped craft.
The company's focus on mobile Internet solutions for telecom service providers has delivered rapid returns: new high growth products accounted for a 10 percent increase in revenues and gross profit margins shot up almost 20 percent. The stock market also responded, with NetworkCo's share price surging 30 percent over the course of a year.