Positioning and consolidation of a leading company in its market niche

Summary

We find ourselves in a time where legislation at the European level is constantly changing. The regulation until now belonged to each country’s own rules, but the European regulatory framework aims to centralize the registrations and homologations according to the same pattern.
Although in the company’s current position, there are relatively few alternatives for growth at a national level, international positioning has a long history. Currently it already has this presence in several countries, but it can be optimized and must be adapted to the new market regulations.
ST strategy helped Lex Registros* to consolidate its business in a niche that it has been leading for some years with solvency at a national level. It provided financial rigour for future relevant decisions, tools and methodology to reach significant strategic agreements and the preparation of the structure to face the challenge of marked growth.

A leading company in the national market

Internationalization as a challenge

Strengthening the structure and brand image

The complete story

Opportunity

In the registration and homologation market in which the company operates, regulatory changes in some of the sectors are a constant and Europe is on its way to centralize the procedures to facilitate regulatory transit and speed up relations between countries.
The company is in a comfortable position in terms of results, but is close to stagnation in terms of turnover, with the possibility of a decrease depending on the measures that the European Union may take.
The property is at a point where it must decide whether to remain in the current scenario or, on the other hand, seeks a better positioning at the international level to place the company in the next level and raise a possible corporate operation in the medium term.

Changeover points

With the confidence of the company’s management, ST strategy acted as strategic advisor and developed a plan to consolidate the company to the next level in order to prepare a potential corporate operation. Among others, he addressed three key challenges:

  • Decrease in the dependency on the founding partner: The past, the commitment and the high presence of the founding partner has allowed the company to reach what it is today. We work together to create a structure where, although the figure of the partner must continue to maintain an indispensable role in the organization, the company must be known for its work, ethics and global rigor, while the partner is positioned in a different role from the one she occupied until now.
  • Solving possible stagnation problems: We identify ways to generate additional income from a detailed analysis of current services and the refocusing of the current methodology with which the service is offered. We also analyze the type of client, focusing the service on the sectors that make sense and eliminating those that do not provide margin.
  • Addressing future regulations at a European level: Although this is an aspect that was beyond our control at the time, we had two options: to prepare for them or wait to see the results. We jointly opted for the first alternative, providing the company with the structure and international focus of its services to achieve new products derived from regulation and a more fixed positioning (in a geographical sense) at an international level.

      Recommendations

      We recommended that the CEO take some immediate steps to improve the potential stagnation situation, and other background steps to address future challenges at a corporate and positioning level:

      • Expansion of markets at an international level where the company has a service proposal that can be adapted to other types of agreements.
      • To increase the structure to face market expansion and potential changes at a European level.
      • Redefining the corporate image of the company to clearly communicate the strengths of the company as a whole.
      • Internally, automate and standardize to the maximum those services with less benefit through reports and systems.
      • To adopt another type of role of the founding partner to achieve a more optimal positioning, which also motivates it and allows it to continue growing in the industry.
      • To provide the company with efficient tools and decisions, in order to carry out a medium-term corporate operation with guarantees.

        * The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real