Developing a compelling and unique corporate value proposition
A Fortune 500 industrial supply company believed its brand was an under-leveraged asset and that it was not getting the credit it deserved in the financial community. Specifically, financial analysts and investors were consistently penalizing the company for not being able to articulate a clear value proposition for customers. This issue stemmed in large part from the company placing far more emphasis on delivering short-term business objectives rather than aligning the organization around a consistent vision and long-term strategic intent. Additionally, continually evolving strategic directions—including e-commerce, supply chain, international expansion, and one-stop shopping—resulted in a nonlinear, confused marketing message about who the company was and what it did.
The engagement, led by a current FullSurge partner in a previous role, centered on facilitating a series of iterative C-suite working sessions designed to drive the leadership team to consensus on its future strategic intent and accompanying value proposition. Simple, yet surprisingly challenging, questions were raised: Within what space do we want to compete? Who is the customer we want to serve? What are their needs and wants, and how will we uniquely meet them? What organizational competencies can we leverage? How do we want customers to view us versus competitive alternatives? What will the outcome look like in financial and business terms? The iterative working sessions helped frame these strategic business issues for the company. Three fundamentally distinct strategic directions were created for the company to consider, and the advantages, disadvantages, and trade-offs associated with each were highlighted. After helping guide the leadership team to consensus on a strategic direction, five business-building platforms were identified along with a set of strategic imperatives that would serve as the foundation for its business strategy going forward. The platform also served as the basis for developing a value proposition that articulated how the company would compete and win in the marketplace.
Upon project completion, the leadership team was, for the first time, united around a common strategic direction. Equally important, financial analysts, portfolio managers, and investors were receiving a consistent message from the company -- one that resonated deeply with them. Three years following the launch of the new strategy, the company’s stock price had appreciated an astonishing +193%.