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| Competitors? Not Necessarily |
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The CFO of this industrial supplies company did not have much to celebrate at the Holidays corporate party: for the third consecutive year his reports were showing a shrinking market share and a less-than-desirable bottom line. Different Market, Different Choices The competition was offering price-cutting supplies, forcing the company into a corner. But was our client really competing against them or it was a matter of positioning? Our advice was to clearly differentiate the company from the other players by exiting the war of the lowest price at any cost. To make it happen, we implemented a plan that required the company to (a) focus on a selected amount of products; (b) portray the image of a quality supplier rather than a price-shop; (c) develop a fully integrated IT system that allowed its clients’ purchase department to interact with the company’s sales, accounting and traffic people; (d) offer a complimentary post-sale support infrastructure; (e) start a marketing program of on-site and off-site workshops for general supplies, tools and machinery. Results Eighteen months after our initial engagement the company was showing a double-digit growth rate. Today, we are their consulting group and they outsourced to us the back-office operations pertaining to their new IT system. |

