Defining the Corporate Strategy of a Leading Auto Ancillary Company

distribution

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 and hence requested UC Strategy to define the Corporate Strategy for them. It had a presence across both, the price pressured and high tech product categories.

Our Approach

UC adopted the following approach to successfully execute the cross divisional integrated marketing initiative:

  • 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 analyse 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 study 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 they should exit/ freeze resources in. The strategic agenda for growth was analysed 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 organisational structuring to enable the group to prepare for future challenges.

Our Impact

The top management further asked Universal Consulting to implement the recommended corporate strategy as well as the changes to the organisation structure. As a result of these recommendations and initial assistance in implementation, the top Management could set a clear growth agenda for its business unit heads. The strategy we defined was to grow from INR 300 Crore to INR 2500 Crore in 5 years, which they achieved in 3 years. The client’s sales currently stand at INR 6500 Crore.