Ideas. Innovation. Value.

Product/Market Strategy

Target of the strategy project was, to define a strategy for a medium-sized automotive supplier and plan long term exit scenarios, after the entry of a private equity investor

Initial situation

  • Commercial due diligence for a private equity investor, preparing the acquisition of an automotive supplier
  • High dependency on one main customer
  • Strong competition by new market participants
  • Product portfolio historically grown

Targets

  • Detailed definition of the future product/market position
  • Planning of possible exit strategies

Approach

  • Improvement of trancparency concerning contribution of current product groups to economic success
  • Analysis of competition situation, evaluation of competitors
  • Product group segmentation, product portfolio consilidation
  • Definition of Strategic Success Positions
  • Definition of necessary competences
  • Preparation of strategic scenarios, validation and selection
  • Derivation of a development planning framework and a detailed planning of necessary development resources and competences
  • Preparation of a detailed action plan in order to implement and operationalise the strategy

Results

  • Coordinated and communicated product/market strategy
  • Defined target customers
  • Stringent product portfolio, fit for future
  • Dedicated responsibilities for implementation
  • Detailed activity roadmap and implementation plan
  • Scenarios for strategic partnerships as exit situations
  • On long terms: development of a automotive supplier group by growth and further investments, increase of revenue from 10 Mio. € to 380 Mio. € within 9 years