Developing a Growth Strategy for a Training Company
A global training company with the following lines of business wanted to develop a growth strategy
- Multimedia, soft skills and retail training for IT
- Corporate training
- Testing services
- Learning services
The client also required an evaluation of other ventures like sourcing and establishment of a private university. The top management requested UC to assist in answering the following questions:
- Which countries should the company focus on for the retail business?
- Which additional areas of training can be executed from the existing retail training network?
- What should be the content of the courseware for retail training?
- How should the delivery model be for corporate training?/li>
- Which industry segments should be prioritised for corporate training?
- What are the future trends in the corporate segment likely to be?
- What is the potential of the testing business? What should be the business model for providing testing services?
- Which segments/ verticals should the company focus for testing?
- What is the size of outsourcing market for learning services from Europe and US? Which industry segments should the company focus on? What should be the business model? Is acquisition the way to grow learning services business?
- Which other related business should the company enter?
- What will be the projected financials for the company? How much investment is estimated and what will be the return on Investment?
- What should be the top level organisation structure to execute these services? What should be the Key Result Areas (KRA) and job description of the top level management?
To develop the growth strategy, UC adopted the following approach:
- Conducted structured primary research (More than 250 respondents in 20 key respondent categories across 14 Cities)
- Identified 20 country potential for the global retail training business and defined a two level filtering approach
- Level I - Country macro factors like gross domestic product (GDP), size and growth of industry, information technology (IT) Industry size, IT Companies, skilled IT workforce and focus of principals like IBM, Microsoft etc.
- Level II - Market potential assessment, demographic segmentation, employability index, projected IT jobs, competition landscape, number of players entering etc.
- Shortlisted 3-4 countries with high growth potential for retail training
- Devised a domestic retail training strategy with the following parameters -
- The team analysed preferences of students and corporates, focus areas of other training companies and their strategies globally
- Developed key value determinants for future for the training service providers
- Identified emerging industry segments that will require trained talent and identified four key opportunity areas for the retail business
- Defined a format for delivery of training, identified synergies with other businesses for improving capacity utilisation of the retail centers
- Defined the way forward for a recent acquisition made by the company in the retail training segment
- Devised a corporate training strategy -
- The team analysed key drivers for training needs e.g. attrition, absence of talent, corporate behavior for outsourcing training, role of the trainer, importance of reach and scale, delivery models, need for specialisation etc.
- Identified emerging industry segments that will require trained talent and positioning required by the training company
- Defined a strategy roadmap for the corporate training business
- Devised a learning service strategy -
- Analysed the value chain in the learning services business i.e. content development
- Analysed trends in the off-shoring market and shortlisted high potential verticals
- Evaluated acquisition options and recommended entry strategy
- Defined business concept for the off-shore and on-shore operations
- Devised a testing services strategy -
- Estimated the size and growth of the testing business e.g. no. of exams conducted, written and on-line exams
- Evaluated opportunities of assessments by industry associations, corporates and academics
- Defined focus areas for testing business and defined the way forward
- Explored other opportunities
- Analysed opportunities in the sourcing segment and for private universities
- Evaluated synergies between the new business with its existing businesses, analysed business potential for the segments, and then recommended the way forward
- Projected financials for each business for three years and also built consolidated financials for the company
- The team designed the organisation structure, KRAs at a corporate level and ensured synergies across businesses
The client received a list of the countries with a high potential for retail training. It also obtained detailed strategy plans for retail training, corporate training, learning service and the other testing services.