
Case Example
Devising corporate strategy and organization structure for a USD 1.2 Bn large auto components player in India
Client Challenge
The client is a large auto component supplier having presence in eight product categories mainly supplying to two wheeler segment; management was looking for realigning its capabilities and businesses for future growth.
The client had a presence across both, the price pressured and high tech product categories
Our Approach
- The engagement began with assessing and defining the capabilities for each existing business. This study helped pinpoint their internal capabilities as perceived internally and by key customers across current product groups
- We then assessed the future potential of respective product groups. Thereafter, our team worked with the core management team of the client to analyze and define the corporate strategy. Our strategy was based on a detailed analysis of market trends and changing landscape and identification of key success factors. Customer selection behavior analysis and competitor positioning analysis was conducted to analyze the client’s strengths and weaknesses on the key success factors and capability gaps were identified
- The strategy definition exercise concluded with the definition of corporate strategy for including businesses where the client needed to add specific capabilities to improve its performance, businesses where the Group should have highest focus and businesses the Group should exit / freeze resources. The strategic agenda for growth was analyzed considering three market positions that our client could take in the market; these were ‘scale leadership’, ‘design and research leadership’ and ‘assembly leadership’ depending on what parts of value chain a player would need to be a specialist in
- In addition, we identified potential international markets for existing products, conducted product-group wise revenue planning for the next 5 yrs. and also redesigned product development process of the group
- Our team also developed a detailed transformation plan including organization structuring to enable the group to prepare for future challenges . The Top management further asked Universal Consulting to implement the recommended corporate strategy as well as the changes to the organization structure
Our Impact
As a result of these recommendations and initial assistance in implementation, Top Management could set a clear growth agenda for its business unit heads. The strategy we defined was to grow from 50 Mn USD to 420 Mn USD in 5 years, which they achieved in 3 years. The client’s sales currently stand at 1.1 Bn USD