Growth strategy for a manufacturer of playground equipment

A CEE-based manufacturer of playground equipment was looking for attractive expansion directions. The client considered strategic growth achieved both by adding new products to its product range and by reaching out to new client groups. The company was open for organic growth strategies, as well as to acquisition opportunities.

The main role of the consulting company CIVITTA was to prepare a fact and data-based analysis unveiling profitable and feasible growth strategies.

What is the best growth strategy for the company

The company is a very important and profitable entity operating in the market of playground components, achieving successful sale figures in various regions. However, the company owners and managers are aware that they are operating in a very dynamically changing market so that to keep their competitive edge and financial performance they need to keep the same pace as the frontrunners.

Therefore, to support the company in building a growth strategy, CIVITTA consultants have reviewed the following areas:

  • product portfolio,
  • growth potential for each client segment,
  • distribution channels, including the launch of e-commerce activity (from scratch or via a takeover).

Strategic choices structuring

The advisory project conducted by CIVITTA was focused on a few key business questions:

  • What should be the target product portfolio and client base? What do competitors offer? Is the competitive edge sustainable over time?
  • Does the current management setup allow the business to grow further? What are the priorities of different management board members and shareholders? Is there space to unite their interest in critical matters?
  • How to structure growth in a dynamic and financially feasible way? How to diversify from pure B2B business and enter the B2C product market? What shall be the targeted distribution channel structure and how to get there?

Actionable recommendations for the company’s strategic growth

As a result of the project conducted by consultants from CIVITTA, the client was provided with a set of recommendations in the following areas:

  • aligning priorities of all the shareholders and management board members and reorganising the governance of the company to unleash further growth potential,
  • launching e-commerce activity,
  • identification of interesting complementary targets for a takeover and significant scale-up,
  • starting the investment process by looking for a financial investor to support growth via acquisition.

Even a dynamically growing company that operates in a very competitive market can strive to make better use of the potential of its industry. However, decisions about new investments must be based on reliable data and appropriate conclusions developed on their basis.

CIVITTA is one of a few consulting companies that combine the competences of market research and strategy consulting, thanks to which it can effectively support its clients in the process of building growth strategies.

Contact us to discuss how we can help you use the full potential of your company!

 

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