Niche vehicle manufacturer considering operating model change
A quasi-captive for a profitable niche automotive VM was considering changing their business model to establish fully in-sourced operations. The client wanted to understand the value creation potential and best operating model to support the business.
Strategy& developed a cost advantaged operating model for the client based on a detailed understanding of the core business value chain and economics. We developed a pro forma portfolio and estimated profitability based on projected vehicle growth, financing penetration, and loss characteristics. The team also identified the value of the captive operations to the enterprise in terms of increased sales, enhanced customer experience, and increased loyalty.