INTERNATIONAL:
Market Expansion
Troubleshooting Challenges Posed By International Governments
Securing Victory for a U.S. Firm Abroad

Market Research/Analysis:

The Client’s Challenge:
The Board of a Global 20 Firm approached TCG to prepare an independent, outside business case assessment of whether they should proceed with an internal recommendation to make a significant investment to penetrate the U.S. market for military vehicles.

TCG Strategy:
TCG provided the client’s management with a detailed quantitative and qualitative assessment of the military market (DoD), the non-tactical vehicle market (Defense and Homeland Security), and the export market to foreign governments (border guards, internal police, and militaries).  The TCG team also modeled current and projected required numbers of vehicles and the capabilities sought by these target customers, as well as projected requirements in a post-Iraq environment.  The assessment included the dynamics of the market, competitors, decision makers, and potential timing of a large procurement.  Once the management had the assessment, TCG helped to prepare the presentation to the Board, which detailed the market analysis and outlined a strategy for market entry should the Board decide to proceed.

Execution:
In order to complete the assessment, TCG gathered information from government and commercial sources.  The TCG team made several trips with, and on behalf of, the client to meet with Army, Marine, and National Guard officials.  TCG also suggested that the client form a partnership to pursue this opportunity, and thus provided advice on the benefits and detriments of teaming with various companies, met some potential partners, and incorporated the potential aspects of a joint venture into the market scenarios. 

Result:
Once the assessment was complete and the data analyzed, TCG found that the client’s internal product development group had drastically overestimated the size of the market and had misestimated the timing.  As a result, TCG recommended that the Board not develop the new vehicle.  The Board accepted the recommendation and credited TCG with saving the firm at least $25 million in development costs plus the unnecessary diversion of significant management attention.

back to top

Helping a Subcontractor Become a Prime

The Client’s Challenge: 
A major corporation that traditionally worked as a subcontractor in the public sector came to TCG in order to reposition itself as a major government contractor in its space.  The firm’s major challenge was that despite being successful in the commercial sector, it lacked the government profile and contracting expertise to credibly compete for major government contracts as a prime.

TCG Strategy:  
TCG worked with the firm to define the space in which it wanted to compete, assessed its existing lines of business in both the public and private sectors, and identified the services the federal government required in the short and medium-term whose needs the client could fill.   

Execution: 
TCG worked with the client to craft and then implement a strategic plan that:

• identified the federal agencies and key officials whose current and emerging requirements the client could ably fulfill;
• explained the agencies’ current and developing policies and strategic direction that might provide opportunities for the client;
• helped the client demonstrate to the government its innovative approach to solving longstanding security challenges; and
• recommended effective messages the client could bring to the agencies in order to enhance its profile and offerings.

Result: 
Over the course of 18 months, the client effectively implemented the strategic plan developed by TCG to present itself as a strong partner in the federal marketplace; in return, the client secured several contracts as a prime contractor valued at tens of millions of dollars.

back to top

New Market Entry/Securing Regulatory Approval:

The Client’s Challenge: 
For three years, a start-up communications company had struggled unsuccessfully to obtain Federal Communications Commission approval to deploy its novel technology in the U.S. commercial market.  Despite numerous commercial applications, several federal agencies, including the Department of Defense and the Federal Aviation Administration, raised objections with the FCC due to perceived safety implications.  The company was on the brink of bankruptcy and had pursued an increasingly confrontational approach with the U.S. government due to pressure from their investors.  Meanwhile, its chief competitor was pursuing FCC approval of a different technology approach that would limit the company's commercial success.
  
TCG Strategy:  TCG learned the details of the client's challenge quickly and mapped the constellation of proponents and opponents of the technology in the executive branch, Congress, think tanks, and trade press.  With input from the client, TCG applied its deep knowledge of government decisionmaking to develop merit-based counter-arguments that would mitigate the concerns of the opponents.  TCG tailored these counter-arguments to each organization's unique policies, processes, and politics and developed a strategy to make their case to each organization – including the sequence of each presentation.  TCG also developed strong arguments to persuade proponents to speak out in favor of the client’s technology.  
 
Execution:  TCG coached the client on tone and style of its presentations to match each opponent’s concerns, and accompanied them to meetings with many mid-level government officials responsible for the technical, operational and policy implications of the technology.  In the course of these discussions, the client learned first-hand about their opponents’ concerns and would slightly modify their technology to satisfy them.
  
Result:  In seven weeks, the client successfully persuaded its opponents to support their technology, leading the FCC to approve its use in a newly created, multi billion dollar commercial market.

back to top

Market Expansion

The Client’s Challenge:
After experiencing incremental sales in the Chinese market by working through a single distributor, a top U.S. biotechnology firm made a strategic decision to expand its presence in China.  The company approached TCG to provide strategic and tactical advice and assistance as it attempted to manage the risks and opportunities inherent in the marketplace.  

TCG Strategy:
Based on the company’s short- and long-term goals as well as ongoing developments in the Chinese market, TCG assisted the company in crafting a comprehensive strategic plan.  This plan outlined the steps required to engage relevant industry stakeholders in increasing awareness of the company and innovative applications of its products, supporting Chinese government initiatives in biotechnology development, and identifying potential partners and customers.  The overall effort required a clear and consistent corporate message and emphasized the principles of mutual benefit and sustained commitment.

Execution:
TCG helped to execute this plan by working with the company to establish relationships and collaborations with key Chinese ministries, agencies, research institutes, universities and private companies.  In addition, TCG assisted the company on highly technical business negotiations with potential partners and strategic dialogue with scientists and policymakers.  TCG also provided the company with advice regarding how, when and where to establish its formal presence in China.  As the engagement unfolded, TCG participated in the management of various challenges – large and small – that inevitably arise in an ever-changing and dynamic market.

Result:
Within one year, this effort resulted in multiple collaborations of varying scope including the signing of a joint venture in the Great Hall of the People with a leading Chinese biotechnology company.  As a result of the progress achieved, the customer significantly accelerated its expansion plans in China.  In 2006, the company launched a formal office in Shanghai to better service its growing client base and maximize the opportunities in the marketplace.

back to top

Troubleshooting Challenges Posed By International Governments

The Client’s Challenge: 
An equipment company approached TCG for help when the Iraqi government failed to pay for past purchases.  The client had a contract to supply a large number of refurbished vehicles and other equipment to the Iraqi Ministry of Defense.  The Iraqis had not paid the client for 40 days, and if five more days passed, the equipment would have been forcibly shipped by a third party and all leverage to recover the payment would have been lost.  If the client had not been paid, its survival would have been jeopardized.

TCG Strategy:   
Based upon an intimate understanding of the Iraqi government’s goals and missions, TCG worked with the client to craft a compelling rationale for the Iraqi government to expeditiously fulfill its outstanding balance.

Execution: 
TCG identified and contacted mid-level officials at the Ministry of Defense to present the background of the matter as well as the client’s case for immediate payment.

Result:   
Within three days, TCG had convinced the Ministry to act and the client secured the $1.7 million it was owed.

back to top

Securing Victory for a U.S. Firm Abroad

The Client’s Challenge:
A leading U.S.-based global aerospace and defense firm approached TCG for assistance in competing for a multi-billion contract in Europe.  The client entered the competition after two major European firms were already ensconced and had set the tone for the competition to their advantage.  The firm requested that TCG assess whether it should pursue the opportunity at all, and if the answer was affirmative, to advise and assist with the pursuit.

TCG Strategy:
TCG advised and helped to coordinate a multi-pronged strategy for the client.  TCG worked with the firm to map the decision-making process, identify the key decision makers, and assess the market.  TCG also assisted the client in crafting an offset strategy and gaining support for it from the European government as part of the bid.

Execution:
Working closely with the client’s CEO, TCG’s senior leadership went to the country on several occasions to meet individually with each member of the decision-making team in order to gain first-hand knowledge of the opportunity. These meetings included the Prime Minister, Defense Minister, Finance Minister, Foreign Minister, and Chairman of the Parliament’s Defense Committee.  Once the client decided to pursue the bid, TCG’s senior leadership advocated on behalf of the client in several face-to-face meetings over an 18 month period.  TCG also designed and executed a complementary multi-part public affairs strategy that overcame negative media stories about the client that the competing bidders had generated.

Result:
The strategy paid off as the client successfully came from behind to win the $4 billion contract.

back to top