JBR helps LED lighting sharpen strategic plan

Assignment

JBR was approached by a supplier of industrial LED lighting for support in challenging and sharpening its strategic plan.

Background

The client develops, assembles and sells LED lighting for the industrial environment and LED grow lights for the greenhouse industry. The client also provides additional service support to their customers. Improving productivity, safety and working conditions and reducing the carbon footprint are relevant issues for the industry and strong drivers for the demand for better lighting solutions.

On the other hand, lighting of industrial premises is considered a low-tech commodity for which price is an important choice criterion. Especially for larger premises, this leads to a high degree of price competition. Furthermore, the installation industry faces a shortage of hands and lighting is mostly seen as a low-tech sideline activity.

Problem Statement

For the client, founded in 2012, 2021 will be its first profitable year. Along several loss-making routes, a profitable product portfolio has now been built up and the company is at a tipping point. Due to a history of substantial investments, the shareholders expect a well-founded strategy to be formulated which continues the positive development without further investment needs. The loaded history is the basis for an additional question about the added value of continued growth with the current shareholders versus strategic or financial divestment.

Our contribution

Initially, existing documents and insights were discussed with the client and a structured picture was created of the strategy the client envisioned and the work done to arrive at this vision. Additional topics were then researched to verify the existing vision. Where necessary, the vision was refined. Missing aspects of applicable strategic frameworks were answered to provide assurance that the client was making a value-adding choice.

In addition to making the client's strategic choice process as insightful as possible, the client gained additional insights into market dynamics and market segmentations.

The result

The refined strategic plan was presented to and approved by the SB and will be implemented in the coming years.