A U.S. based raw materials supplier to formulated product manufacturers
(adhesives, sealants, specialty coatings) was considering entry into a
high growth market sector within Asia. The company was faced with a
number of strategic issues such as: How big and fast-growing is the
sector? Does the growth and profitability of the sector warrant entry?
Which market segments are most attractive? Should the company enter as
a supplier or as a finished product manufacturer?
Primary research involved depth interviews with Asian customers,
competitors, suppliers, distributors, and other important participants
throughout the value chain. An in-depth value chain analysis was
performed to assist in determining where (and how) along the value
chain the company should enter. Orr & Boss assisted management
in strengthening its core competencies, making organizational changes
that enabled the company to react more quickly to changing customer
requirements, and becoming proficient at using new routes to market.
- The risk-reward analysis supported a business case for
- A detailed market entry strategy was developed for China
and India and the company successfully entered the market as a finished
- The new finished product group has become a separate
- Top-line growth and profitability have exceeded best case