Situation: A $30 billion global company wanted to understand whether photovoltaic (solar) energy was a viable marketplace for their products and, if it was, they needed a business strategy and plan for entry that would immediately position them as category leaders. A burgeoning industry, photovoltaic energy generated $17.2 billion in global revenues in 2007 and is expected to grow at double digit rates through the next five years. For our client, participating in this growth market seemed like an attractive opportunity. However, our client wasn’t clear on how best to invest—it knew little about the industry, the size of the market, competitive dynamics, or the potential avenues for growth.
Core Strategy Group’s Approach: We tapped into our experience as seasoned executives adept at identifying new products and market opportunities. To determine if photovoltaic energy was an actual growth area for our client, we developed a comprehensive set of ideas about how the company could compete in the industry’s value chain and where they should enter the market. We then tested these hypotheses with potential customers and partners in the industry around the globe. This research helped identify the role of system integrator—design, installation, and implementation of solar systems—as the area where the client could successfully enter in a leadership position, and enhance their brand by doing so. We projected this market at over $1 billion globally.
Results: We developed a market entry plan as well as a three year business strategy that positioned the company to capture $200-400 million in revenue by 2011—about 20% to 40% of the market—as a system integrator. This ensured that they entered the market in a leadership position. We also created resource, capability and investment plans, as well as detailed customer plans for potential targets to pursue while launching the business. All of this was done to ensure a successful market entry and long-term sustainability.
The Core Strategy Group Difference: The problem that most companies face is that while markets have changed fundamentally, the practice of marketing has barely changed at all. Core Strategy Group combines traditional business-focused marketing discipline with the aggressiveness and drive of an insurgent strategic model. It is a model built for clarity, speed and impact. This is the new model for companies who are serious about improving their market performance, revenues, share and return on marketing investment. It provides the most effective way for any organization to compete—and win.