Increasing standardization in the vehicle industry triggers scaling-up of component solutions and thus drives commercial benefits. Market share in turn, becomes key to sustaining economic viability. Tsetinis Consulting was hired by a vehicle safety solution leader to re-evaluate its business position for growth and profitability.
The outset in brief
- Significant loss of market share across global sales regions
- Proliferation of product portfolio to offset market share issues
- Dramatic increase in CAPEX to maintain production level setup
- Trailing margins against industry leaders
At crossroads between sales growth or profitability increase
Initial stress tests on key business assumptions led to the formulation of working hypotheses, followed by a task grid to reach a solid formulation of perspectives. Crucial to the realignment of established strategic positions is a deep understanding of the current industry environment. As a result, a revision of current strategic planning for the upcoming business period was achieved, followed by the launch of a global transformation program.
Strategy planning revised
- Pricing for key product segments refined
- Tactical elements for price positioning introduced
- Overall market view refined with latest macro data by region
- Market development scenarios aligned
- Peer group dynamics classified showing clear trends
- Performance points defined for strategic roadmapping
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