Terramet’s profit started to decrease gradually due to the reduction in the market volume and price wars. This prompted the owners of the company to search for a new business.

The shareholders of the company set aggressive targets before the experts of Strategic. A new business must be 6 times more profitable than the current one in 5 years. In order to use the strengths of the team and its skills, a new market must be similar in competence to distribution of metals. The business must be sufficiently stable and promising for the international market.

First, the Strategic team identified several areas for development: the markets that are closest to metal distribution, their volume, profitability and business models. Strategic analysts prepared benchmarking of the most successful companies, as well as trends in each market. It made it possible to come up with the first hypothesis of how a new business of the client should look.

To test the demand in practice, the strategists created a proposal and were looking for clients for each of the business alternatives. Due to numerous interviews with the client, the Strategic team and shareholders of Terramet managed to choose one of three alternatives, discarding the least promising. On completion of the project, which lasted 4 months, the Strategic specialists developed a business model, an organizational structure and an action plan to launch the company successfully.