Fall 2009 issue of Horizons

be required as a result of the changes in market conditions, and altered its strategy from an organic growth to an acquisition strategy. The company was able to expand both domestically and internationally, achieving its growth goals and becoming a market leader. By focusing on the three elements — customer focus, innovation, and sound strategy and execution — a company can obtain and sustain a market leader position. As discussed, these three elements cannot be viewed independently from one another but must be viewed collectively. Based on the examples above, if a company remains focused on these three elements, it will enjoy a market leadership position regardless of economic conditions.

market share, it has many choices. The company can look at its competitors and target an acquisition. It can build capacity. It can grow internationally through acquisition or joint venture relationships. The market conditions will help determine the right alternative as well as if expansion is even the right decision. Here is an example of how market conditions impact all three components — customer focus, innovation, and strategy and execution. This service provider was not a market leader but was gaining market share and had developed an organic growth strategy to more than double the size of the organization and grow to $1billion over a five-year period. During the first year the market conditions changed, causing the organization to evaluate all three components. From a customer perspective, the company had a good reputation and was held in high regard by its customers. It was not known on a national or international basis but only in select markets for select services. It had a good track record of offering innovative services to its customer base and also was in a strong financial position. It evaluated its customers, anticipated what was going to take place with competitors in the market — some of which had market leadership positions, determined what existing and new innovative services would

Questions? Contact:

Dan Raskas Partner Corporate Finance and Forensic Services Group 314.678.3530 dan.raskas@rubinbrown.com

9 u fall 2009 issue