Automotive & Mobility

Developing a Growth Strategy for a German Commercial Vehicle Manufacturer

Challenges

Do in the market segment ‘light commercial vehicles/vans’ exist growth opportunities for the client organization?

 

Should the client enter this market segment, and if so, how?

 

To what extent would an entry into this market segment increase the utilization of the workshops/service network?

Problem-Solving Approach

Creating a deep understanding of the market with respect to the relevant segment:

  • Compiling data regarding the worldwide market size and the forecasted market development over the next years
  • Ascertaining the size of the various target customer segments
  • Incorporating the market trends with relevance to the customer segments

Identifying the factors that determine market success:

  • Analyzing purchase criteria
  • Deriving the vehicle characteristics (to be)
  • Assessing the fit between the client brand and developing the requirement specifications

Analyzing the cost structure and the operational competencies:

  • Generating an understanding of the main cost drivers and deriving a reference cost structure
  • Working out the most important levers to increase profitability (sensitivity analysis)
  • Developing a profitable target-cost structure based on a ‘best-of logic’

Defining the market-entry strategy:

  • Determining prioritized regions
  • Assessing potential cooperation partners and acquisition targets respectively
  • Preparing a detailed business plan
Results

Disproportionate high costs/risks compared to the potential earnings/
chances

 

Effort to enter the market segment ‘light commercial vehicles/vans’ abandoned

 

Project stopped ahead of schedule

 

No market entry in the relevant segment by the client organization according to the recommendations—even not 12 years after the project