Components manufacturer China entry/growth strategy
An auto components manufacturer was evaluating growth opportunities in China. Specifically, they wanted to evaluate the potential for introducing a product based on new technology that they pioneered.
Strategy& competitors, and existing relationships. We looked into competing incumbent technologies and likely long-term substitution based on total cost of ownership and government incentives. Working closely with the client team, we developed business cases for each technology penetration scenario, recommended a phased investment approach to minimize risk, and determined sales required to achieve scale. This included evaluating implications for the client’s global operations. We also looked into likely initial customers and mode of entry, including potential JV partners. We developed a plan for the client to grow their Chinese business to $500M. Based on our findings, the client explored a JV with a local manufacturer and engaged us in another study of growth in an adjacent market.