Situation:
The C-level executive in charge of mergers and acquisitions for a leading human resource outsourcing firm asked Metis Strategy to investigate possible European expansion opportunities for the company. The company had never made a foray beyond the US previously, and asked Metis Strategy to evaluate the market potential in a specific market place. Metis Strategy was tasked to devise an international expansion strategy and assess most likely strategic scenarios that would align and build upon the organization’s core competencies.
Approach:
Metis Strategy conducted an in depth analysis of the European markets chosen, including the evaluation of similarities and differences between the customers’ needs in each market and how they could be met with the products and services our client provided. We identified specific geographic areas within the target markets where the preponderance of companies of the size that suited our client best were located. We identified potential strategic partners and acquisition targets that were based in the areas identified and which would fill in the product and service gaps identified in specific markets.
Metis Strategy developed and international expansion strategy that complemented the organization’s overall strategic goals. We performed a scenario analysis and drivers that would impact each in order for our client to asses the risk and benefits of each.
Result:
The Metis Strategy team presented the analysis to the CEO, who tasked several of his lieutenants to act upon our recommendations. Based on the Metis Strategy analysis and its presentation to the CEO and the head of strategy, the company decided to re-consider its international expansion plans and, for the time being, prioritized domestic growth over international expansion.
The client’s leadership team continues to leverage the analysis for the evaluation of strategic expansion opportunities and targets; the corporate leadership team has opened communications with several potential strategic partners.
