Growth Through Globalization
After 18 months of disagreement, management of a leading basic chemicals producer was still at odds over whether (and where) to build new capacity, whether to expand existing plants in the US, or whether to swap capacity with competitors.
SDG helped break the stalemate and further, developed an Asian entry strategy for one of the manufacturer's major products.
SDG introduced a systems perspective to create and assess the merits of alternative strategies for the business portfolio. We developed an innovative industry supply/demand/price model to forecast global and regional prices over 20 years. Based on insights into the effect of the different alternatives on the overall portfolio, a consensus was achieved to supply the Asia market from new capacity in North America and, in the longer term, to build in Asia half the capacity originally proposed by the business leadership team. The new strategy added 15% to the business unit’s value.
