Case Study | Develop Strategic Options for a Digital Service Company

Functional Topic

Strategic Options for Growth Strategy

Project Industry

Consumer Service

Needed Support

International Team of 3 Top-tier
Strategy Consultants

Duration

8 Weeks

The Challenge

The client, a leading consumer service company, wanted to explore new strategic options by learning from the business models and service offerings of top digital players in China and Korea With these regions being pioneers in digital innovation, the company sought to apply best practices to enhance its service offerings.

The primary challenge was to gather insights from these markets and propose new strategic options to increase revenue, customer engagement, and customer retention. The project needed to be developed within a strict 8-week deadline, ensuring they were immediately implementable without disrupting ongoing operations.

Role of Consultport

The company engaged Consultport to provide a team of three strategy consultants who could analyze the digital landscape in China and Korea and suggest relevant recommendations. Consultport responded promptly, proposing five highly qualified consultants within 48 hours.

The client ultimately chose three consultants with more than 10 years of experience in top-tier consulting firms and digital companies, coupled with local market experience in Germany, Korea, and China, each contributing a unique perspective on the project. The team needed to conduct a thorough analysis of the market, organize workshops, and facilitate meetings with key industry players.

The Approach

The consultants adopted a two-step approach to develop strategic options for the client. First, the team conducted comprehensive desk research to identify key trends, business models, and service innovations from China and Korea that aligned with the client’s core business. This research provided a foundational understanding of the market.

The second step involved on-the-ground engagement. The consultants carried out expert and user interviews to validate and deepen their findings, including both professionals working within the client’s industry and focus groups with final users. This allowed the team to gain real-world perspectives on what was driving success in these markets.

Throughout the project, the team organized several client workshops, where they shared findings and encouraged discussions that helped refine their approach based on client feedback. Moreover, the team facilitated a field trip to China and Korea, where the client met with leading digital companies and industry experts. This direct exposure to innovative business models and service offerings provided the client with a 360-degree perspective on potential growth opportunities.

The Results

At the end of the project, the client received insights into potential growth and diversification opportunities, exceeding initial expectations. The consultants provided an action plan focused on four key strategic options.

Revenue Growth

The team identified specific business models from Korean and Chinese companies that the client could adopt. For instance, one model involved the integration of subscription-based services to their existing offering, which would create a more predictable and scalable revenue stream.

Customer Retention

Based on user feedback and analysis of successful digital services, the team recommended improvements to the client’s loyalty programs. They proposed integrating more personalized services, mirroring the strategies of top Chinese companies that excel in customer retention. The goal was to increase customer lifetime value by offering tailored experiences that kept users engaged.

New Service Offerings

The team helped identify new service areas that aligned with existing capabilities, where the client could differentiate themselves in the market. One example was adding a mobile-first payment solution, a move that Korean tech companies had used to dominate their markets. This service would streamline the purchasing process for the client’s customers and enhance their user experience.

Improved Customer Service

During their research and field trip, the team identified digital solutions that the client could implement to modernize their infrastructure. One specific recommendation involved adopting AI-driven customer service platforms, which would allow the client to improve customer service response times and automate common inquiries. The estimated impact would be a 20% reduction in customer service costs within the first year of implementation, with improved customer satisfaction ratings.