New Entry in Construction Services

  • B2B
construction cranes

Client: Global Construction Firm

Issue: New Sector Entry in Construction Services

Our client was already a major player in the market delivering certain services to the public sector; however they wanted to expand their offering to include additional services.  As a result they needed to understand whether offering the new services could be profitable, what it would do for them strategically and how they should best deliver.

Our Solution:

We broke down the project into 2 parts:

  • Phase 1: Should we enter the market?
    • How big is the market for this service?  Is it growing?  Who are the key competitors?  Are they making money?  How do their business models work?
    • Delivered through desktop research, analysis of competitor financials and interviews with market experts.  Allowed us to understand that the market was large, there were strong strategic reasons for entry and that margin could be made
  • Phase 2: How should we enter the market?
    • Who are the key customers?  How do they procure?  What are their key requirements and unfulfilled needs? Who are the main players in the region?  How are they perceived and what are their capabilities and ownership structures?  Where should we focus for maximum impact?  What should the key elements of the proposition be?  Should we partner, acquire, or aim for organic growth?
    • Delivered by: 20 detailed telephone interviews with senior decision makers at potential customer organisations, desk research, plus analysis.  Allowed us to recommend the area of the market to target, the shape of the proposition, critical success factors, key decision makers and top 5 potential acquisition targets.

Results:

Client entered the market for this new service a year later through a £25m acquisition, buying the #1 recommended acquisition target on our list.  They have now integrated the company and are performing extremely well under a ‘one stop shop’ solution as well as using their existing single service stream model.