Repositioning an automotive industry supplier
The Client
Leading North American manufacturing equipment supplier and maintenance/repair/service provider
The Challenge
Due to a confluence of negative factors, such as unfavorable automotive industry developments, intensified competition and price pressures, and escalating costs, the financial performance of our client was deteriorating. Internal discussions had been conducted, but no plan or action had been determined due to “paralysis by a multitude of ideas”. The foreign parent company of our client stepped in and engaged HighQuest Partners to conduct a thorough business and market analysis in order to define a focused strategy and action plan that will return their subsidiary to profitable growth.
The Solution
HighQuest Partners delivered a growth strategy and action plan that allowed our client to gain market share by further penetrating their existing customer base in the short to medium term. Components of the strategy included an upgrade of our client’s sales and service model, automation of key processes, stronger OEM brand positioning/building, and continued cost discipline. The longer-term strategy leverages these new business capabilities and will allow our client to acquire additional brands, build scale, sell new products and services, and potentially enter new geographies.
HighQuest Partners also prepared a business and market diagnosis report for our client. The report included a thorough inspection of our client’s financial and operational performance, and it also assessed the growth and trends of the external market. The analysis also included surveying a sample of our client’s customers. The business and market diagnosis was instrumental in the development of the overall business strategy because it helped to identify our client’s differentiating capabilities; determine operational weaknesses; evaluate new market opportunities (products and geographies); quantify customer penetration and current brand awareness, and identify external threats.
The Results
Once implemented, the strategy will allow our client to become the leading value added OEM service provider in North America. It is expected to help them to grow from approximately $40 million in revenues in 2004 to over $100 million by 2009.
