Opportunity portfolio for growth
A telecommunications company faced declining sales in their two core business units and enlisted Market Strategy Group to identify new growth opportunities. In order to balance the company’s need to diversify away from their core products with the need to manage the inherent risks of launching new products or entering new markets, MSG looked for revenue opportunities of two types:
- Those that could obtain the most possible revenue out of existing products, distribution channels, geographies and sales methods – in other words, those that could slow or even reverse the erosion of the company’s core products.
- Those that exploited adjacent product and/or service lines, related distribution channels and geographies and similar sales methods – in other words, those that allowed the company to diversify away from the core, without losing the advantages that some of the competencies they already had could deliver.
Ultimately, the company elected to move forward with a portfolio of opportunities that balanced the security of the core businesses with the growth of the extensions in a way that the Board could be comfortable with the risks that the company was taking and the management team felt was executable and allowed them to reach their growth aspirations.