Share price recovers by 50% due to clarity around implementing strategy
The CEO of a large UK healthcare company (turnover of over £900m) needed to rapidly develop a new strategy due to changes in market pressures and a need to refocus the organisation to both increase top-line revenue as well as dramatically reduce the operational costs. The client not only needed a focused strategy but also a clear communication of that strategy to the investors to regain their confidence and get their continued support.
Clarus Consulting was engaged to conduct a full analysis of the current market and the competitor landscape and to look at future market influences. This was also to include a thorough review and interrogation of market projections from the various sources.
We used our strategy analysis pyramid approach to build a business strategy, based on the business situation (external) and the business capability (internal), which was aligned to the corporate vision. The resulting strategy covered the organisation's future operating model, customer profile and acquisition model, pricing model, and a thorough assessment of their current portfolio.
We produced two main strategy documents as part of the detailed review:
- Market Analysis Summary – this covered the market size and all the key economics for the next 5 years as well as key factors influencing the market from socio-economic to regulatory issues. We also reviewed both the supply side and demand side dynamics, producing a summary market impact and implications for our client
- Detailed Market Report – included all the data analysis along with detailed competitor reviews and impact comparisons across the market including brand perception, accessibility, and quality of portfolio
These detailed reports were then used to develop an investor communication document, which outlined the strategic direction for the business against the challenging commercial landscape. The communication was received extremely well by the investors and led to a recovery in the share price of over 50%.