• Adhesives & Sealants
• Automotive
• Chemicals - Basic & Specialty
• Construction & Building Supplies
• Food & Beverage
• Inks
• Paint & Coatings
• Personal Care
• Pharmaceuticals
• Plastics
• Printing Industries

Problem
A U.S. based raw materials supplier to formulated product manufacturers (adhesives, sealants, specialty coatings) was considering entry into a high growth market sector. 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?

Solution
Primary research involved depth interviews with 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.

Results

• The risk-reward analysis supported a business case for market entry.
• A detailed market entry strategy was developed and the company successfully entered the market as a finished products manufacturer.
• The new finished product group has become a separate P&L unit.
• Top-line growth and profitability have exceeded best case scenario estimates.