Strategy: Case Study 4

Build a strategy for entering the high-speed internet access business for a lagging cable company that will ensure budgeted customer goal is achieved.

Large U.S. Cable company in the process of emerging from bankruptcy

Given the financial challenges the company faced, it was late rebuilding its network and launching a high– speed Internet (HSI) product.

Being late to market meant that within its footprint telephone companies had gained more market share for their DSL products than in other markets.
The company needed a crisp, fact–based strategy to drive rapid HSI penetration both because it is highly profitable and key to a bundling strategy.

Form and lead a project team with representatives from all corporate functions and all major geographic markets.

Determine the fact–base required to build a winning plan, and assign elements to each team member.
Conduct original research with various customer segments and front–line employees.
Analyze all data and develop a recommended path forward, including timeline and metrics.
Facilitate a series of meetings with senior leadership to gain consensus on strategy.
Design and lead a three day 'HSI Summit' for 50 key leaders through which the plan was put into action.

While an inherent market disadvantage remained as the late–comer to the market, the company achieved its target penetration.
The company was sold out of bankruptcy 18 months later at a premium of 50 percent above its initial valuation, and the success of this product was considered key to this improved return to creditors.