Flevy Management Insights Case Study
Breakthrough Strategy Overhaul for Biodegradable Packaging Firm


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Breakthrough Strategy to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A biodegradable packaging company addressed market saturation and rising material costs through innovative strategies, resulting in an 8% market share increase and a 12% reduction in operational costs.

Reading time: 8 minutes

Consider this scenario: The organization is a market leader in biodegradable packaging within the consumer goods sector, struggling to sustain its competitive edge against rising eco-friendly substitutes.

Despite a robust product line, the company's growth has plateaued amid increasing material costs and market saturation. They are seeking innovative strategies to redefine their market position, enhance value proposition, and penetrate new segments without compromising on sustainability commitments.



In response to the situation, it could be hypothesized that the organization's stagnation is due to a lack of differentiation in a now-crowded eco-packaging market and a failure to capitalize on emerging market trends. A second hypothesis might be that operational inefficiencies are inhibiting cost-effective scalability. Finally, a third hypothesis could be that the organization's current strategic planning does not effectively align with evolving consumer preferences and regulatory landscapes.

Strategic Analysis and Execution Methodology

The organization's path to renewed market leadership can be navigated through a proven 5-phase Breakthrough Strategy process. This methodology not only drives strategic clarity but also ensures that execution is aligned with long-term objectives and market realities.

  1. Market and Competitive Landscape Analysis: Initially, assess the external environment to understand market trends, consumer behaviors, and competitive dynamics. Key questions include: What are the emerging market segments? How are competitors differentiating? What are the regulatory impacts on the industry?
  2. Internal Capabilities Assessment: Evaluate the organization's core competencies, operational processes, and innovation pipeline. This phase focuses on identifying areas where the organization excels or requires improvement to compete effectively.
  3. Strategic Visioning and Scenario Planning: Develop a future-backward vision that charts a course for the company's evolution. Engage in scenario planning to anticipate future market conditions and create flexible strategic plans.
  4. Strategy Formulation and Business Model Innovation: Craft the Breakthrough Strategy, integrating insights from the previous phases. Explore new business models and revenue streams that align with the organization's sustainability ethos and market demand.
  5. Implementation Roadmap and Change Management: Translate the strategy into actionable steps with clear milestones. Prioritize initiatives based on impact and feasibility, and establish a change management plan to ensure organization-wide adoption.

This methodology is akin to frameworks utilized by top consulting firms, providing structure to navigate complex strategic challenges.

For effective implementation, take a look at these Breakthrough Strategy best practices:

Breakout Sales Growth Methodology (104-slide PowerPoint deck)
Breakthrough Strategy Stimulating Questions (93-slide PowerPoint deck)
Breakthrough Strategy Development: Competing for the Future (54-slide PowerPoint deck)
Formulating a Breakthrough Strategy (114-page PDF document)
Mindsets for Breakthrough Strategy: Made Visual (125-page PDF document)
View additional Breakthrough Strategy best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Breakthrough Strategy Implementation Challenges & Considerations

Executives may wonder about the integration of sustainability into the Breakthrough Strategy. Sustainability is not just a compliance metric but a core strategic differentiator in the packaging industry. Aligning business objectives with sustainability goals can unlock new markets and drive consumer loyalty.

Another consideration is the alignment of long-term strategic objectives with short-term financial pressures. It is vital to balance immediate profitability with investments in innovation and market development that will pay off in the future.

Lastly, there might be concerns about organizational readiness for change. A robust change management plan, including stakeholder engagement and communication strategies, is crucial for successful strategy implementation.

Upon full implementation of the methodology, the organization can expect increased market share in emerging segments, improved operational efficiencies, and a stronger brand reputation for innovation and sustainability. These outcomes should be quantifiable in terms of revenue growth, cost savings, and customer acquisition rates.

Implementation challenges may include resistance to change, misalignment between departments, and the need for upskilling. Overcoming these requires strong leadership, clear communication, and a culture that embraces continuous improvement.

Breakthrough Strategy KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Measurement is the first step that leads to control and eventually to improvement.
     – H. James Harrington

  • Market Share Growth: Indicates competitive performance and market penetration.
  • Cost Reduction Percentage: Reflects operational efficiency gains.
  • Customer Satisfaction Index: Measures the impact of the new strategy on customer perception and loyalty.
  • Employee Engagement Scores: Assesses internal acceptance and enthusiasm for the strategic changes.
  • Innovation Pipeline Strength: Evaluates the potential of new products and services to contribute to future growth.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it became evident that fostering a culture of innovation is as crucial as the strategy itself. Encouraging cross-functional collaboration and adopting agile methodologies can accelerate product development and market responsiveness.

Real-time data analytics emerged as a critical tool for strategy monitoring and decision-making. According to McKinsey, companies that leverage consumer insights outperform peers by 85% in sales growth and more than 25% in gross margin.

Another insight is the importance of strategic partnerships. Collaborating with supply chain partners and industry innovators can enhance competitive advantage and foster a more resilient business ecosystem.

Breakthrough Strategy Deliverables

  • Strategic Plan Outline (PowerPoint)
  • Market Analysis Report (Word)
  • Operational Efficiency Framework (Excel)
  • Sustainability Integration Playbook (PDF)
  • Change Management Communication Plan (Word)

Explore more Breakthrough Strategy deliverables

Breakthrough Strategy Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Breakthrough Strategy. These resources below were developed by management consulting firms and Breakthrough Strategy subject matter experts.

Breakthrough Strategy Case Studies

A Fortune 500 consumer goods company successfully redefined its packaging strategy by adopting biodegradable materials, resulting in a 20% increase in market share within two years.

An international logistics firm leveraged breakthrough strategies to optimize its supply chain, achieving a 30% reduction in carbon footprint while improving delivery times by 15%.

A leading beverage manufacturer implemented an innovative packaging solution that doubled as a marketing campaign, significantly enhancing brand visibility and customer engagement.

Explore additional related case studies

Integrating Sustainability with Profitability

Integrating sustainability into the core business strategy is paramount for long-term profitability. Firms that lead in sustainability practices are seeing an average increase in profit margins by 12.4% compared to their counterparts, according to a study by Bain & Company. This profitability is not just from cost savings but also from creating innovative products and services that meet the growing consumer demand for sustainable options.

Moreover, sustainable practices often lead to operational efficiencies that can further enhance profitability. For example, reducing waste or optimizing energy use can significantly cut costs. Investment in sustainable practices also opens up new financing avenues, such as green bonds and sustainability-linked loans, which often have more favorable terms due to the lower risk profile associated with responsible business operations.

Ensuring Organizational Alignment and Readiness

Ensuring that the organization is aligned and ready for the strategic shift is critical. According to McKinsey, 70% of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. To mitigate this, it is essential to engage with employees at all levels early and often, clearly communicating the vision, the reasons behind it, and the expected benefits for both the company and its employees.

Additionally, readiness involves providing the necessary training and resources to employees to adapt to new roles and responsibilities. This might include upskilling programs, new technology tools, and revised performance metrics that align with the new strategic direction. A sense of ownership and participation in the strategy can significantly boost the chances of successful implementation.

Measuring Success Beyond Financial Metrics

While financial metrics are critical, measuring success in a Breakthrough Strategy initiative requires a broader set of KPIs. According to a report by Deloitte, non-financial performance indicators such as brand strength, customer loyalty, and innovation can account for more than 80% of a firm's value. These metrics provide a more holistic view of the company's performance and its potential for long-term success.

For instance, customer engagement metrics can indicate how well the new strategy resonates with the target market. Employee engagement scores can serve as an early indicator of internal adoption and morale, which is crucial for the strategy's execution. Innovation metrics, such as the number of new products in the pipeline, reflect the company's future growth potential.

Adapting to Rapid Market Changes

In today's fast-paced market, the ability to adapt quickly to change is a competitive advantage. A PwC survey found that 79% of top-performing companies invest in tools and strategies that enhance their agility. This includes adopting flexible strategic planning cycles, leveraging data analytics for real-time decision-making, and cultivating a culture that encourages innovation and rapid experimentation.

Moreover, it's vital for companies to develop a sensing capability to detect early signals of market change. This can involve setting up dedicated teams to track industry trends, investing in market research, and engaging with customers and partners to gain insights into shifting preferences and behaviors. By staying attuned to the market, companies can pivot their strategies proactively, rather than reactively, ensuring they remain ahead of the curve.

Additional Resources Relevant to Breakthrough Strategy

Here are additional best practices relevant to Breakthrough Strategy from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Increased market share by 8% in emerging segments, surpassing initial projections and indicating successful penetration into new markets.
  • Achieved a 12% reduction in operational costs, demonstrating improved efficiency and scalability within the organization.
  • Elevated customer satisfaction index by 15 points, signaling enhanced consumer perception and loyalty towards the brand's innovative and sustainable offerings.
  • Strengthened innovation pipeline, resulting in 20% more new products in development, aligning with the strategic focus on market responsiveness and growth.

The initiative has yielded notable successes, particularly in market share expansion and operational cost reduction. The increased market share in emerging segments signifies a successful pivot towards new markets, aligning with the strategic vision. The reduction in operational costs reflects improved efficiency and scalability, contributing to sustainable profitability. However, the elevation of the customer satisfaction index, while positive, fell short of the ambitious targets set during the initiative's planning phase. This indicates a need for further refinement in customer-centric strategies to fully capitalize on the brand's innovative and sustainable offerings. Additionally, while the innovation pipeline has been strengthened, the actual market impact of these new products is yet to be fully realized, highlighting the need for continued focus on market responsiveness and growth. To further enhance the outcomes, the organization could consider more robust customer feedback mechanisms to align product development with evolving consumer preferences and invest in targeted marketing strategies to amplify the impact of new offerings.

Looking ahead, the organization should consider refining its customer-centric strategies to fully capitalize on its innovative and sustainable offerings. This could involve implementing more robust customer feedback mechanisms and investing in targeted marketing strategies to amplify the impact of new offerings. Additionally, a continued focus on market responsiveness and growth is crucial, necessitating ongoing investment in innovation and agility to adapt to evolving consumer preferences and market dynamics.

Source: Breakout Strategy Formulation for Sports Apparel Firm, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Revolutionary Breakthrough Strategy for Semiconductor Manufacturer

Scenario: A semiconductor firm is grappling with the challenge of scaling production while maintaining innovation leadership in a highly competitive market.

Read Full Case Study

Breakthrough Strategy Overhaul for Metals Corporation in High-Growth Sector

Scenario: A metals company specializing in rare earth elements is grappling with the challenge of scaling operations to meet explosive market demand.

Read Full Case Study

Breakout Strategy Development for a Global Technology Company

Scenario: A global technology firm is facing stagnation in its growth trajectory.

Read Full Case Study

Market Penetration Strategy for Healthcare Provider in Digital Health

Scenario: The organization is a mid-sized healthcare provider specializing in digital health services.

Read Full Case Study

Market Expansion Strategy for Life Sciences Firm in Biotechnology

Scenario: The organization is a mid-sized biotechnology player experiencing a plateau in growth after a decade of consistent expansion.

Read Full Case Study

Strategic Overhaul for Life Sciences Firm in Biotech Sector

Scenario: The organization is a mid-sized biotech company specializing in developing innovative therapies.

Read Full Case Study

Strategic Overhaul for Educational Institution in Competitive Market

Scenario: A prestigious educational institution is facing stagnation in student enrollment and a decline in academic reputation amidst an increasingly competitive higher education landscape.

Read Full Case Study

Transformation Strategy for Air Cargo Carrier in Emerging Markets

Scenario: A mid-size air cargo carrier specializing in emerging markets is experiencing operational inefficiencies and intense competition.

Read Full Case Study

Transforming a Health and Personal Care Chain Amid Market and Operational Challenges

Scenario: A health and personal care stores chain embarked on a Breakthrough Strategy framework to address declining market share and internal inefficiencies.

Read Full Case Study

Breakthrough Strategy for Event Planning Company in Corporate Events

Scenario: The organization is a mid-size event planning company specializing in corporate events, facing a 20% revenue decline due to recent economic downturns and increased competition.

Read Full Case Study

Direct-to-Consumer Growth Strategy for Boutique Coffee Brand

Scenario: A boutique coffee brand specializing in direct-to-consumer (D2C) sales faces significant organizational change as it seeks to scale operations nationally.

Read Full Case Study

Organizational Alignment Improvement for a Global Tech Firm

Scenario: A multinational technology firm with a recently expanded workforce from key acquisitions is struggling to maintain its operational efficiency.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.