3 Steps to Successful Growth Strategy
A Los Angeles-based production company with over twenty years of successful operational development in the areas of television, film and streaming content.
In the face of increasing production competition from streaming services such as Netflix, Hulu, YouTube and Disney+, our client was struggling financially.
We were tasked with helping the firm develop concurrent strategies for identifying new sources of profitable growth in a difficult media environment, while positioning it for a new capital raise.
The questions were how and where to grow in order to re-assert profitability in the short term, while at the same time positioning the firm for future investment, despite the increasing dominance of digital channels.
After an exhaustive review, we implemented a three stage approach. First, we worked with our client to build a new fact base, where we assessed and quantified the media landscape, advertising revenues, trends, competitors and growth rates. We drilled down into individual end-markets & channels.
Second, based on our analysis and the current position of the business, we developed a series of strategic alternatives, with a range of potential outcomes and differing capital requirements.
Third, we sought to operationalize our plan, assessing how well the current operating model supported the strategic options. Once aligned on the growth plan, we highlighted specific changes required to execute on the plan.
Take-away & Impact
We assisted our client in creating region-specific strategies, where each region – for example the UK or US, would be treated differently based on how media is consumed, and the level of return expected.
We also implemented a reduce cost to serve plan, while leveraging their existing TV assets to broaden reach and access. For instance, in Europe, we look to achieve better scale economies by moving to a regional hub model.
To date, the production company has successfully moved to a new operating model – a multiplatform ad proposition with content at the core – which is driving new sales and focusing the business on customers.