Portfolio strategy for European retail group
Case study:
Portfolio strategy for European retail group
- Situation
- European retailer had acquired a national group of B2C multi-channel retail banners and B2B retail service units such as call centers, content production, warehousing, last mile logistics
- The retailer was seeking a new strategic direction for the acquired group by refocussing the portfolio and implement a rigorous “fix”, “close”, “sell” approach
- Actions
- Analyzed B2C and B2B market/customer combinations per business unit
- Conducted market assessment to identify trends and opportunities
- Segmented consumers/customers based on needs and profitability
- Evaluated strategic fit and synergies with retailer’s existing portfolio
- Developed target pictures and strategic options for each business unit (harvest, refocus, expand, merge, sell, close)
- Assessed feasibility, risks and benefits of each option
- Aligned target pictures with corporate strategy and financial objectives
- Defined a target portfolio and established strategic priorities and resource allocation
- Identified and quantified synergies across business units
- Created and modeled portfolio scenarios based on strategic options
- Identified attractive scenario based on risk-adjusted returns and strategic alignment
- Conducted market scan and engaged potential buyers for non-core assets
- Managed sale process with detailed divestiture plan and negotiations
- Results
- Recommended portfolio structure and strategies per business unit agreed and implemented
- Established clear vision and action plans for each business unit and initiated implementation of approved strategies
- Streamlined portfolio for better focus and coherence
- Successfully completed sale of non-core assets to fund core business transformation
- Positioned group to better compete and adapt to changing customer needs
- Improved resource allocation and investment in promising opportunities
- Enhanced financial performance of group and stopped cash drain