News & Research: Client Successes

Case Study: Market Entry Business Case Assessment

ScottMadden conducted market analysis for the shared services business unit of a leading global engineering and construction company to assess the potential for marketing business services to third parties worldwide.

• Executive management established a key initiative of increasing revenues from external sources
• Client initially thought shared services group was comprehensive and diverse, encompassing IT, finance, HR, safety services, office/relocation, and corporate relations/performance marketing
• Group believed it had a sound track record delivering results for internal customers
• Initially, client thought selling bundles of comprehensive services to third parties would be attractive, but needed help validating whether this comprised an attractive business
• Simultaneously, client was integrating a newly acquired staffing business

• Provided a recommendation that included conducting market analysis to develop a business case assessment.
  
• Synthesized primary and secondary data to define and size the potential markets for business services and to understand the intensity of competition
• Interviewed potential customers about their needs and receptiveness to client offerings
• Established segment-specific marketing strategies and identified bundled and stand-alone customer solutions
• Reviewed and benchmarked organization for customer satisfaction, cost effectiveness, and culture
• Identified areas of strength and weakness, and compared results to market expectations for service delivery
• Determined complementary delivery and infrastructure requirements (and client gaps) to support segment-specific initiatives
• Developed financial model by customer segment and service to project the range of financial results

• Market analysis identified multi-million dollar business opportunity that matched or exceeded the clients objectives
• Demonstrated that certain client business services were not viable candidates for external markets
• Steering committee endorsed the project teams business case assessment
  
• Company deferred action due to a change in strategic focus, but used market analysis results to target internal improvements