How we identified and suggested additional revenue opportunities for an electronic equipment OEM in wind sector
The client, with a multinational presence, is a key supplier of electrical and electronic wind turbine equipment and has an experience of about four decades. The management wants to explore and tap into new business opportunities by entering new sectors, relevant to their product line and capabilities, to attain additional revenue streams.
MEC has been a regular consulting partner for the client with a history of strategic support in a wide range of topics, spanning from product roadmaps to market entry strategies.
The client is now positioned to use its experience and references from the industry to enter new sectors. Building on this idea, the management is keen on understanding the opportunities they can tap into in the next 5 years and add new revenue streams to the company’s top-line
To pursue this aspiration, the client reached out to MEC with two key questions in their mind: 1. What are the new sectors where additional business can be built, leveraging existing capabilities? 2. What are comparatively the most attractive opportunities in these sectors?
We concocted a three-step approach to identify the right-fit opportunities for the client, starting with an outside-in view of the market to identify hot opportunities, prioritizing the opportunities that fall in line with the client’s go-to market strategy and finally, matching the client’s business model with the market’s value chain to highlight the exact value pockets and customers.
The approach involved building a good understanding of the client’s operations and product line’s applications across industries. Based on this, we identified the most favourable opportunities that were further ironed out in a workshop with the client, weighing their approach towards the market.
Outside-in market opportunity identification
We commenced by leveraging our understanding of the client’s operations, value proposition and products to first identify all the potential sectors relevant to the client’s existing product line and manufacturing capabilities. Next, we shortlisted the most relevant businesses among these based on an industry deep-dive, focusing on:
- Scale of potential annual revenue till 2022 (Attractiveness)
- Match in the investment profile required to the client’s capacity (Feasibility)
- Stability of the market forces and conditions (Risk Mitigation)
Through a thorough assessment of these businesses’ value chain, market structure, customers and competitors, we identified the opportunities in each of the new businesses and their lucrativeness.
Inside-out opportunity prioritization
The opportunities selected by us, until this point, were lucrative from a market angle. It was important that these opportunities sync with the client’s go-to market strategy and capabilities. Hence, we conducted an on-site workshop with the client to understand their approach and business model towards the new markets and discuss the fitment and attractiveness of each of the opportunities on those lines.
This helped us narrow down to a framework that we could use to prioritize the opportunities and formulate a business model for the client to tap into those.
Matching client’s business model strategy with the positioning of opportunity in the value chain
We amalgamated the client’s targeted business model with the value segments in the opportunities and defined a complete go-to market strategy for each of the opportunities, explicitly. Hence, an analytical assessment of the opportunities was commissioned with a focus on addressing the following questions:
- What are the ongoing market trends in the customer and competitor landscape?
- How can the client position itself in the market and what will be the scope of its offering?
- What would be the channel to market?
- Who will be the target customer segments?
- What is the outlook on the size of the market and where will the growth come from?
Using this analysis, we were able to pinpoint the exact offerings and customers that the client can target in the prioritized markets.
The client was distinctly able to perceive the value for them in several new businesses and grasp the respective appropriate approach to draw that value in increasing their top-line. Further, they could now identify the tweaks they might need to make in the offerings or products, using their existing capabilities, and create new offerings with a ready list of target customers in the market.