An Engineering Company wants to identify the sweet spots.

Understand your strengths…and play to your advantage.

A competitive market requires smart decisions in order to grow sustainably. By understanding your competitive advantage, you can focus and grow your core portfolio, and shift away from unprofitable business.

1. Client Brief

The Need – ‘We have a relatively small market share of a multi billion dollar mechanical engineering market across Australasia, and are looking for direct & competitively sustainable business growth opportunities – employing existing capabilities & capacity from our operations both locally and from around the globe.’

The Context – A global player with a small Australasian manufacturing presence, the client was seeking to skillfully grow its local share with attractive business – without the risk of negative retaliatory consequences from its larger & more dominant competitors.

2. Approach

  • Workshops to define & capture competitive imperatives – value based prioritization
  • Granular segmentation analysis across products, markets, customers & competitors
  • Competitive positioning & relative advantage of each player & product offer
  • Understanding of the size, composition, profitability & opportunity in each sub-segment
  • Strategic fit & attractiveness of customers & end use segments moving forward
  • Critical success factors in supplying each segment
  • An understanding of the longer term attractiveness of each sub-segment
  • Growth opportunities – based on current competitive advantage

3. Findings & Recommendations

  • Identification of 2 highly attractive market segments in terms of growth & above average margins
  • Identification of 2 distinct product competitive advantages in terms of cost & benefits sought by customers versus the competition in these 2 attractive market segments
  • Identification of 10 key customers to target for this growth – strategic fit
  • Development of value propositions to communicate the competitive advantage to these customers
  • Identification of unattractive market segments & products for the purpose of managing future portfolio mix – reallocating resource & capacity, strategic business shedding due to competitor retaliation

4. Results

  • 23% profitable revenue increase within 2 years – overall business
  • 236% profitable revenue increase in target market segment A
  • 45% profitable revenue increase in target market segment B