Enterprise growth strategy for Asia-Pacific market
Dramatic technology and marketplace shifts continue to disrupt the global enterprise connectivity and solutions market. For a global enterprise services provider, these impacts were apparent in the company’s connectivity business. It experienced a sharp revenue decrease, triggered by overcapacity and price decline.
However, new opportunities were opening up in the network and IT services market, offering the potential of future growth. The company is responding to these challenges and opportunities through a focused customer strategy, a shift towards the services business, and a focus on increasing share in high growth markets such as Asia-Pacific.
Challenge
To outperform its competitors on growth in the Asia-Pacific enterprise services market and capture a share of nascent new businesses, the company required a targeted growth strategy. In particular, the growth strategy needed to focus on emerging markets, especially China and India. A number of strategic questions needed to be answered:
- What is the product and solutions set that will deliver future growth?
- On which geographic regions in Asia-Pacific should the company focus?
- Is a different business model required?
- What are critical capabilities to build in-house, and what partnerships and acquisitions are required?
- What are the investment requirements, and how should corporate resources be allocated?
Approach
A.T. Kearney worked with the Asia-Pacific leadership team, following a hypothesis-driven approach for strategy development. Key aspects included:
- Assessment of current customer perception and needs, the regional market, and competitive, technology, and regulatory trends
- Development of strategic growth options (along customer segments, products, and geography dimensions), business model design, and M&A target assessment
- Strategy deep-dive for China and India, and additional focus on emerging markets of Asia-Pacific
The strategy was consequently translated into a strategic roadmap for execution.
Results
The resulting growth strategy focused on four major thrusts:
- Strengthen the ability of the company's Asia division to support, defend, and grow the global connectivity business, using the defined investment roadmap of M&A activities in large target markets
- Develop new services capabilities for growth markets
- Build a credible local capability in China and India in a focused subset of network-centric services, while leveraging global/regional capabilities for other solutions/services on an opportunistic basis
- Develop a new business model to capture changing market dynamics of the connectivity business
The strategic roadmap was executed over a two-year period with major acquisitions and an aggressive investment plan. The company is becoming a leading enterprise services provider across Asia-Pacific.
Contact
|
Bernhard Kickenweiz is a principal in A.T. Kearney's New York office.
Pierre Brzustowski is a partner in A.T. Kearney's Paris office.
