A regional trading company with fifteen years of history had built a strong name in its traditional categories and served hundreds of customers across the Gulf. For three consecutive years, however, revenue had barely grown and margins were shrinking.
1. Strategic question
Management believed that the market had become purely price driven. The dominant response was to press suppliers for better terms and offer higher discounts to customers. Despite the extra effort, results did not improve.
The strategic question was whether the business was genuinely constrained by the market or whether a different strategy and operating model could restore profitable growth.
2. Diagnosis in brief
Glory Focus approached this as a combined strategy and performance diagnostic:
– Three years of sales and margin data were analysed by customer, product and region to identify patterns that were not visible in headline figures.
– Customer profitability was assessed by estimating the cost to serve for different account types, including sales time, logistics and credit risk.
– External research on market trends and competitor behaviour was reviewed to understand where and how value was being created in the sector.
The analysis showed that:
– A small number of customer segments and product categories generated a disproportionate share of profit.
– Many smaller accounts were loss making once cost to serve was included.
– Competitors who had invested in digital ordering and more focused portfolios were gaining share in specific niches.
3. Glory Focus intervention design
Based on this fact base, Glory Focus worked with the leadership team to design a strategic reset built around three decisions: where to play, how to win and what to stop doing.
1. Where to play
The team clarified which customer segments and product families offered the best margin potential and strategic fit. This required agreeing on criteria such as profitability, growth potential and alignment with capabilities.
2. How to win
For priority segments, the company defined a differentiated value proposition that did not rely solely on price. Elements included improved service levels, tailored product bundles and the introduction of a digital ordering option for selected customers.
3. What to stop doing
The organisation made conscious choices to exit or reduce focus on low value segments and product lines. This freed capacity in sales, logistics and working capital for redeployment.
A twelve month roadmap translated these choices into initiatives with owners, milestones and metrics. Quick wins included simplifying the product catalogue, redesigning sales territories and piloting a basic digital portal for high value distributors.
4. Impact and outcomes
Within the first full year after implementation:
– The customer base was reduced by around thirty percent, primarily by exiting low value accounts, while total revenue was maintained.
– Mix improvements and focus on higher margin categories led to an uplift in overall gross margin.
– Sales teams reported greater clarity on which opportunities to pursue and which to decline.
– Leadership discussions shifted from defensive price debates to proactive planning around targeted segments and offerings.
5. Strategic lessons
From a Glory Focus perspective, the engagement demonstrated that:
– Strategy and execution cannot be separated. Decisions about segments and offerings must be supported by changes in sales coverage, processes and metrics.
– Data driven insights, when presented in a simple and visual way, can unlock leadership alignment even in emotionally charged debates about customers and products.
– Deliberately stopping certain activities is often as important for performance as launching new initiatives.