By developing a new growth strategy and creating cost-reduction plans by product, an Asian conglomerate brought its struggling telco division back onto the growth track.
A large Asian conglomerate had made a string of acquisitions over time to increase profits through its strong membership organization. However, some of the acquisitions were in deep trouble, including a telco division that was underperforming and had a balance sheet deficit.
The organization was having trouble turning around these acquisitions, so it worked with BCG to fundamentally transform the business. The process began with a 100-day plan that followed five key principles for turning the telco division into a profitable, growing business unit:
If we had delayed the involvement of BCG any longer, we might not have been able to recover and would have had no other option but to sell the company for next to nothing.
In just six months, the division went from losing money to making a profit. The company experienced a complete turnaround and became better positioned for future growth.