Situation

An independent, publicly-owned commercial finance company was emerging from the problems caused by the economic recession. The company approached The Alta Group for help in identifying new markets to reach aggressive growth objectives. Alta consultants had served this client in the past and knew its history, the company’s offerings and its market position.

Solution

It was determined that Alta’s role would be to help identify five market segments and provide high level information about each. Based on these findings, the company would determine where it wanted deeper market knowledge. Once the client and Alta pinpointed the segments with the most potential, Alta provided information about types of equipment being financed in each segment, various barriers to entry, levels of competition and pricing parameters. Alta’s Captive and Vendor Finance Practice, which was deeply involved in the project, noted how various market criteria uncovered in the research matched the client’s distinct value proposition. Alta provided a road map of essential capabilities that would be needed to realize market entry success in each of the most promising segments.

Success

Alta’s client ultimately entered several new markets and avoided paying for deep research into one area that Alta determined was not worth additional exploration, thus saving the client some budgeted project money. In addition to carving out new business channels, the client also avoided areas that were not likely to be rewarding enough. The client benefited immediately from comprehensive research, analysis and supporting data for each market segment studied because Alta also provided strong business leads resulting from the consultants’ meetings with manufacturers. While consultants often provide market studies, Alta’s specialized knowledge of vendor finance and the global equipment financing industry enabled Alta to lead this client toward markets that clearly were under served in the past.