Operations strategy to support break-out growth for passenger vehicle JV

A Chinese-Japanese joint venture in China focused on the passenger vehicle segment wanted to achieve rapid growth. Their organization and operational processes were not adapted to support break-out growth, particularly in core processes.

Strategy& profiled the current performance of core company processes to adapt them to local market requirements. Core processes included prototype development, management and budgeting, parts sourcing approach, investment management, and vehicle customization. Further, we identified key improvements that would invigorate and sustain rapid growth in China as well as the key changes required across the company’s organization, processes, and measurement systems to achieve them. The project identified key gaps which became the focus of new investments and capabilities development. The client approved and acted on these recommendations, positioning the company for above-market growth over the coming years.