Growth Strategy

Overview

Callidon works with its clients to develop growth strategies and to analyze individual growth hypotheses. We take a rigorous fact-based approach – without facts, organizations will frequently overestimate the true market potential for their growth opportunities and underestimate the strategic obstacles or investment required for success. In conjunction with client organizations, Callidon case teams systematically study competitors, customer needs and the strategic landscape, developing successful growth strategies and business approaches.

Strategic Challenges

Growth is frequently the most challenging problem facing most organizations. Shareholder expectations often require businesses to grow at a significantly faster rate than their underlying markets. This requires managers to continuously:

  • Identify new markets or customer segments for their products
  • Develop new or enhanced products for existing customers or new market segments
  • Move into attractive adjacent market opportunities
  • Improve performance of the sales organization
  • Optimize pricing strategies to accelerate revenue growth

In addition, to achieve their growth goals, managers need to determine the optimum mix between organic growth investments and acquisition, balancing risk with shareholder value creation.

  • Organic investments generally result in higher returns on invested capital. However, these investments can take many years to develop into large businesses and firms frequently lack the capabilities or scale to nurture them successfully
  • Acquisitions can instantly provide firms with necessary capabilities and scale, but making the right acquisition, at the right price, is often challenging

Activities

  • Interviewing current or potential customers to assess unmet needs
  • Estimating market potential for a proposed product, service or solution
  • Developing an economic model to compare investment requirements with the risk adjusted revenue and profit opportunity
  • Estimating the value of operational or market synergies with current businesses
  • Assessing the performance and coverage levels of a sales organization based on econometric sales performance models
  • Modeling price elasticity by product and customer segment to determine optimum price strategies