Background and Challenge

The client, a leading provider of aluminum cable and management, believes this business is underperforming. The client is looking for sustainable opportunities to drive top-line revenue growth and increase plant capacity utilization.

The client asked L.E.K. Consulting to provide strategic focus to its underperforming aluminum cable division. Specifically, we were tasked with identifying geographic and/or industrial segments in which competitors may be weak and/or in which the client may be advantaged.

Approach and Recommendations

We identified the U.S. regional markets that presented particular opportunities for the client to drive incremental sales growth. This included quantitative analysis of the gross profit maximizing price for aluminum cable products based on customer research attained via an online survey of electrical contractors and in-depth interviews with industry participants. The client used the market and growth forecasts data to help inform negotiations with distributors in key markets.

Once clear market opportunities was identified, we developed a coordinated and regionally-tailored commercial strategy for the client to deploy against market needs. This tactical implementation plan zeroed in on and exploited market opportunities rapidly and systematically to enable an unparalleled recovery.

Results

Realize Full Market Potential:  We helped the client understand and achieve growth potential of its struggling aluminum cable business, doubling its business over the course of 12 months.

Position Asset for Successful Acquisition: Our work increased the overall attractiveness of the business, commanding a price premium that far exceeded management expectations on a transaction that closed 17 months post-conclusion of the assignment.

Value-add Research:  We provided market forecasts and penetration estimates by product and by region to help the client plan sales targets, enabling a targeted and rapid execution against market opportunities.