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Medium Revenue Growth

Compress and Expand

#Industrial Goods
ProHub Comment

This is an interviewee-led case focused on revenue growth through product portfolio expansion. The case tests the candidate's ability to analyze exhibit data, prioritize opportunities based on capabilities and impact, and develop a phased implementation strategy. The structured approach moves from quick wins (upgrades with existing capabilities generating $72M) to strategic investments (high-impact upgrades requiring capability building generating $164M), ultimately capturing 84% of total revenue potential.

Estimated Time 15 minutes
Difficulty Medium
Source Wharton
50 / 100
Compressor Co. is a gas compressor manufacturer that makes gas compressors for usage in refineries and steel plants. Recently, their revenues have stayed flat and they want to grow their revenue. The CEO wants our support in thinking about how they can go about the same.

Clarifying Information

  1. Geography - The client is a US-based company with $1 Bn sales but sells to clients all over the world. Turnaround time from receipt of orders to delivery of the compressors is ~1.5 years.
  2. Product - Gas Compressors are huge equipment (size of football field) that are used to compress air and generate high pressures required in the refineries and steel plants. These generally have a life of 10-20 years when maintained regularly.
  3. Business - The client, Compressor Co. earns revenues from selling gas compressors for large-scale refineries or steel plant projects across the world. Maintenance of their compressors is currently handled by third party players that are locally stationed.
  4. Timeline - The client is looking at both short-term as well as long-term recommendations.