overcoming your growth challenges

© 2014 Blue Canyon Partners, Inc.

Overcoming Your Growth Challenge


Market Challenges

Ecommerce

Advanced Technologies


Today’s Discussion

Changes in

Markets

Case Studies

Customer Needs

Growth Challenge Checklist


Tide went out

and left a

new beach

Shrinking opportunities

Retrenchment

Risk avoidance

Profitability

Cash is king

Yesterday…

2008 2009 2010 2011 2012

The Great Recession

Previously

“all boats rose

with the tide”


Slow growth…

“New Norm”

Get under

the hood and

tune up the

engine

...Today

“Recovery”

2013 2014 and beyond…

Rebound –

but not to

pre-downturn

levels


Growth Segments

Commercial vs. industrial vs.institutional vs. residential

New construction vs. aftermarket

Top cities vs. second cities

East vs. South vs. West vs. Midwest

Consolidation

Suppliers

Channel partners

End customers

1. Has the Market Changed?

ContractorSuppliers Wholesaler End Customer

Converging Roles

Packagers to system integrators

Component suppliers to equipment suppliers

Distributors to value-added resellers

New Entrants

Low-cost Asian suppliers

Big Box retailers

eCommerce channel players


Decreased headcount

Sales teams focused on

what they did best

Shift to large projects; abandoned

small-medium projects

Case Study: Shifting Growth Segments

“When you elephant hunt, you risk leaving behind the segments that

today offer broad-based sustainable growth.”

Electrical Distribution

Outcome:

Decrease in 2.4 share points


Security Solutions

New construction dried up

Repair, replacement, remodelingwas the only game in town

Attracted new construction playersinto the aftermarket

Little territory integrity

eCommerce entrants

Case Study: Converging Roles & New Entrants

“It’s a hot mess, and you can’t putthe genie back in the bottle.”

Outcome:

Competitive intensity fueled price pressures…


2. What Are Your Customers’ Needs?

• Focused on your products/services

• Minimal distraction from other suppliers

Share of Wallet

• Requires wholesaler’s value-added support

• Order processing, credit, logisticsCapabilities

• Operates in a growth market

• Sells to non-price sensitive end customers

Segment

• Strong, viable, well-positioned

• Succession management and plansSustainability

• Embraces strategic supplier relationships

• Willing to invest in Better or Best offer

Loyalty


Dealers

From selling hardwareto servicing advanced technology

Shortage of technical talent

Succession management

Lack of financial acumen

Farmers

Maximize yield output

Precision planting and routing

Optimize equipment run time

Assess:

▫ Weather simulations

▫ Soil analysis

▫ Seed sensors

▫ Chemical applications

Case Study: End Customer Needs

Agriculture Equipment


Challenges

EfficientService Drives

Profits

Call Backs Drain

Profits

New Entrants Customer

Experience

Recruiting, Training &

Succession

“Finding, recruiting, and training skilled guys

is the name of the game, keeping these folks

involves a good, balanced incentives program.

The business is all about people and who will

eventually take my place.

“If I can get each of my trucks to complete just one

more call per day that can be a huge profit to my

bottom line. Scheduling the service calls so there

is less time on the road & more sites to cover

matters.”

“Call backs are a killer.

When we have to go back

to the site because the

installation was faulty or

the replacement part

was incorrect, this is a

true waste.”

“For independent C-stores, buying

groups are starting to emerge a

regional basis, serving local stores.

They are getting into many products,

from refrigeration to prepared foods.

They provide training to these store

owners principally to improve

profitability and efficiency

for store owners.”

“The temperature in the restaurant

can go up ten or more degrees in

an hour on a hot day when they get

a packed house at dinner time and

cooking is going full blast.

The restaurant wants to avoid

negative customer experiences

and this is when we get calls

for help.”

Source: External Interviews, Blue Canyon

Analysis

Messages from HVAC Contractors


Theme Red Flag Green Light Recommendation

Segmentation

Is your company unintentionally

focused on end customers who

today operate in stagnant

or declining markets?

Can your sales growth be attributed

to specific customer groups that

help you win your fair share?

Segment based on meaningful

factors to help you identify today’s

growth segments.

Converging Roles

Are suppliers/competitors moving

into unconventional roles that

diminish the value you bring

to customers?

Do you utilize technology and

innovative approaches to help you

and your business partners solve

your customers’ challenges?

Stay abreast of changes and keep

your customers’ problems

in your sights.

New Entrants

Are powerful new players

entering your space, offering

lower prices and gaining

customers’ attention?

Are new players helping you add customer value at a lower cost

to serve?

Promote your services, nurture your customer relationships, be attentive.

Customer Needs

Are you facing price pressures

because your products and

services are believed to

be the same?

Are products faster and easier to

install? Do they provide better

availability from companies that are

easy-to-do-business-with?

Partner with your suppliers to

conduct research and develop

customer insights.

Growth Challenge Checklist


Atlee Valentine Pope, President and CEO

Atlee Valentine Pope

Current Responsibilities

Atlee Valentine Pope is president and chief executive officer of Blue Canyon Partners, Inc., and the co-

author of the growth strategy book CoDestiny: Overcome Your Growth Challenges By Helping Your

Customers Overcome Theirs. In addition to overseeing Blue Canyon’s operations, Atlee works directly

with a number of clients to produce market-driven answers and actions plans that foster profitable

growth. More recently, Atlee’s work has included helping clients in areas such as channel management,

strategy implementation, pricing strategies and adjacencies.

PRESIDENT AND CEO

T (847) 967-0288

E

[email protected]

Experience

Atlee’s work has covered numerous business-to-business issues across myriad industries.

A representative sample of Atlee’s deep experience includes:

Identifying global growth opportunities for multiple U.S. manufacturers

Advising clients on how to solve pressing growth problems in their toughest, most competitive markets

Bringing new business models to clients uncertain about how to use data analytics to create value for

their customers

Helping clients understand how to motivate their customers to focus on value rather than price

Before building Blue Canyon, Atlee served in leadership roles in several start-up ventures and was a vice

president in global corporate finance with First Chicago.

Education and Affiliations

Atlee earned a BA from the University of the South in Sewanee, Tennessee, and an MBA from

Northwestern University’s Kellogg Graduate School of Management.

Thought Leadership

In addition to CoDestiny, Atlee has co-authored more than 40 papers and has been a guest speaker and

lecturer at numerous business events and university courses on topics ranging from market-driven

strategy, best-in-class strategy implementation practices, business-to-business growth, and many more.


Overcoming Your Growth Challenge

overcoming your growth challenges

Business