Building a Presence in Nearby Markets
The Challenge: Our client had achieved considerable success in the automotive market, with a solid presence with major customers in North America, Europe, and Japan. The client’s technology and supplier competencies were valued by these customers, but, despite its track record, the firm realized that it needed to find new markets in which it could replicate its successes in order to meet its growth targets. In order to do this, the firm asked Blue Canyon to help to identify other nearby or transportation markets which they might successfully target.
Assessment: A two-phased new market analysis project was completed for this client. In the first phase, nearly 50 transportation market segments, from heavy-duty, off-road construction equipment to small pleasure boats, were evaluated. Scorecards were developed to evaluate the opportunities in these market segments in terms of various metrics relating to scale, growth prospects, and profit potential. Other scorecards evaluated each segment in terms of factors that were related to the quality of fit with this firm, the key business drivers in these segments, factors that influenced purchase decisions, and short-term considerations involving existing relationships and the product portfolio.
Strategic Solution: From this process, several new transportation market segments were identified as having high priority. During the second phase of the project, in-depth assessments were made to ensure that the right customer targets were selected, the correct elements of strategy were in place, and implementation plans were clear.
Results: This firm established goals for its share of business coming from new markets and for its market share in these targeted segments at the three and six year points. By the third year, it had achieved its year six goals.