Initial Situation
- An automotive OEM is currently working with a digital solution provider as a main supplier of technology, already being built in their cars
- Given the mutual success but also several technical restrictions posed by the potential target of the transaction, the client approached us to conduct a deeper analysis of their business from a commercial perspective
- Before initiating any steps towards the company, the OEM needed a first hand review of the operations and future outlook to make an educated decision regarding next phases
Project Objectives
- Deep-dive of the company’s operations with focus on every aspect of the business model, especially regarding differentiating factors
- Customer analysis in general of the providers and specifically of the target
- Evaluation of market segments from a provider perspective and the main market drivers to arrive at a clear picture of the market’s future
- The analysis served as a basis of decision making regarding initiating a takeover of the digital solution provider in question, thus insourcing the digital solution containing hardware, software and service
challenges we faced
- Quite complex decision matrix and rating criteria for relevant companies
- Market side recommendation was given as a basis for the final decision
Provider Analysis
Analysis of the history, founding partner, investors and major management change of the digital solution provider, to derive stability and need for investments
SWOT analysis based on expert interviews, financial analysis, management capacity and stability and value proposition evaluation – further focus on value chain
Market segmentation
Segmentation of customers and the impact of the solution on their core business – presenting growth rates and potential per segment incl. geographic differences
Customer distribution
Distribution of the target company’s customers by region, business model, size and launch date of the cooperation – focus on pain points and satisfaction with the solution done via interviews with founders and CEO
Industry analysis & trend analysis
Identification of the providers types, market trends and drivers besides challenges
Description of the future market amid heavy consolidation an arising innovations