Changing the Business Model

TypeStrategy Development
Quick Facts$10 million manufacturer (“MetalCo”) of patented metal composites for tile and trim applications in commercial, residential and specialty retail design. Venture backed.
ChallengesMetalCo’s patented metal composites were originally used to manufacture specialty retail and point of purchase displays. While this was a creative use of the company’s technology, the custom, “job shop”, direct sales nature of the business model restricted revenue growth and shareholder value. The unpredictable customer order and shipment cycle strained manufacturing in the young company. MetalCo needed a new product direction.
ApproachIn his role as a Board member, Jim McHugh organized and facilitated a planning process that examined the business model, cash needs, management structure and potential new markets.
ResolutionAs a result of this exercise, the Board was able to initiate a number of action steps that enabled the company to:
  • target new markets that were a fit for MetalCo’s technology
  • raise additional capital
  • introduce new product lines
  • streamline the manufacturing process
  • change the overall business model by entering into key joint venture marketing and distribution relationships

Links to the other strategy development cases:
  1. New Strategy Generates Action…Operational Plan Produces Results
  2. Technology Company’s First Strategic Plan
  3. Corporate Planning in a Diversified Multi-National
To view a list of all McHugh & Company Case Studies, click here.