A leading manufacturer of couplings in India was losing market share over the years. The company had a patent on its key product – jaw couplings. While the company was enjoying the patented regime, other companies started manufacturing other types of couplings (disc, tyre, gear etc.) and became specialists in them. The company entered the non-jaw couplings market but met little success. Thus, the Top Management has requested UC Strategy to develop a growth strategy with respect to its products.
UC Strategy conducted primary research with different target groups to validate the various growth avenues for the firm. The focus of the primary research, apart from understanding industry size and trends, was to identify growth cycles, target markets, distribution channels and future strategies of key competitors. Strategies were defined for:
- Prevention of loss of market share in key product – jaw couplings
- Gaining market share in non-jaw couplings
- Contract manufacturing for foreign companies
- Outsourcing of processes which have low strategic importance, to reduce cost and can compete more profitably
- Evaluation of acquisition as a growth option to beat eventual consolidation in the industry
The client received strategy definitions with respect to its target market, distribution channels and growth.