Title: SPILL CENTER: Search for Client Diversification
Subject Area: Corporate Strategy of Extension
Region: United States
Industry: Environmental Claims Industry
Company: Spill Center
Challenge: Spill Center, a US environmental 24/7 emergency response service provider well represented in the large corporation eGRC space, presented us with a challenge of expanding their reach into unexplored markets. Spill Center is a pioneer in the environmental claims industry. Thirty years ago this niche service was not provided by any company, despite the burgeoning need among billion-dollar industries. Fast forward to 2020, where Spill Center continues to proudly provide support and expertise to the largest companies in insurance, transportation, beverage, and entertainment industries. The client expressed uncertainty on whether it should expand its client base by offering a new product in the cybersecurity industry or by targeting the small to mid-range companies in the eGRC market. The two market entry options would either consist of repositioning a current offering or creating a new offering altogether.
Personal Capital: Project Relevance
Our focus as a team was to gain more knowledge about consulting practices and improve our analytic skills while learning about a new growing industry. We were intrigued by this challenge because Spill Center’s commitment to drive customer experience is also an aspiration we have for ourselves.
Our goal was to gain our clients’ trust by understanding the company’s mission and thus making an impact by helping Spill Center overcome this challenge through our research. We each utilized our own specializations in business strategy, management, new venture development, finance and marketing when analyzing Spill Center and the industries they are currently in, as outlined below:
Social Capital: Embedding in the Realities of Organization & Industry
➢ In order to understand Spill Center’s challenge dilemma in the North American eGRC and Cybersecurity industries context our team collected primary and secondary data from over fifteen sources and conducted hours of interviews and document analysis from the company’s key decision makers.
➢ After discovering Spill Center’s nuances, our team learned about the client’s business model, thirty year history and timeline, unique set of dynamic capabilities and operations. When we deeply understood each stakeholder’s point of view we connected each opinion with a separate analysis so that we satisfy the different needs our clients had.
➢ In our team’s investigation of the two markets for emergency and incident response service providers we collected data on each market’s current size and growth potential and competitive forces, and analyzed the political, economic, social, legal, and technological environments in North America.
➢ Our findings are showcased in a Spill Center case narrative which the company intends to use for their marketing/branding efforts which will be available on their website.
Professional Capital: Analysing and Solving the Challenge
Upon discussion within the consulting team, a comprehensive analysis was conducted to determine the best course of action for Spill Center to maintain a long-term competitive advantage. By harnessing and exploiting the key strengths Spill Center possesses and matching them with potential opportunities that would diversify and grow the company, our team has developed comprehensive strategic recommendations in the form of related-linked diversification and differentiation. Two distinct strategies for this challenge-dilemma have been identified.
1.) Additional eGRC offering for small to middle size company
2.) Additional SBU for Cybersecurity offering
Based on the analysis from Spill Center’s SWOT, which includes a strong reputation, close ties with the industry along with domain expertise, we will make recommendations that include implementing an environmental offering for small to middle-sized companies which will be marketed to penetrate a new untapped market. Entering this new market will diversify and balance their portfolio to promote long term sustainable growth for Spill Center.
Utilizing Capital: Ready for New Projects
➢ In the consulting stage of the project, our team applied a set of strategic management frameworks to conduct a comparative analysis of the options under consideration. The analysis revealed the strongest pairings of Spill Center’s strengths and the opportunities within each industry that should be pursued and exploited.
➢ Our team’s capability to objectively analyze each option while taking into account our clients’ goals led us to make an informed choice.
➢ Our devotion to the project made us turn into creative problem solvers who put together an action plan for Spill Center to implement the proposed solution by putting customers in the forefront of the institution and becoming a symbol for innovation through leveraging its deep industry expertise.