At a Glance
The Full Story
PharmProductCo* wanted to use the Internet to cut costs and focus on growth.
- PharmProductCo is an established brick-and-mortar company with dominant brands in mature categories, but sales have been stagnant over the last few years.
- To achieve 5-10% Internet-related cost reductions and position the company to grow, the client had been testing Internet-based initiatives on an ad hoc basis.
- This unfocused approach had not yielded satisfactory results
- PharmProductCo asked Bain to advise on Internet strategy that would:
- reduce inefficiencies and costs
- improve speed and effectiveness increase customer intimacy
Bain used three sets of key questions to guide the client to a prioritized set of initiatives to adopt in e-business.
After outsourcing chosen functions, integrate the company's functions around an intranet linked to key suppliers and customers.
Preliminary findings suggest cost reduction opportunities ranging from 3 percent to 20 percent across the company.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.