Should I Expand Or Diversify

Electronics: Opportunity Analysis

Business Challenge:

Client wanted to evaluate opportunities for its product line beyond automotive sector in India and understand the size of opportunity in each of end user segments and which region and segment should they concentrate for maximum profitability.

A leading electronic component manufacturer in India was struggling to improve Sales growth despite having a brand name, JV partner and infrastructure. We undertook an in-depth market assessment and the study turned out to be an eye-opener. Within 20 months of implementation of product mix-market segmentation recommendations the result was 45% y-o-y growth in revenue.

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Business Challenge:

The client wished to evaluate the attractiveness and viability of the project and understand sensitivity of the project on select macro-factors impacting the project.

Our Approach:

We conducted a feasibility study with a dynamic sensitivity analysis with particular focus on

Estimating addressable market size for proposed product-line
Map the competitive scenario – Current mode of operation, Business Models, sales and likely expansion plans of key competition
In-depth Financial assessment of Cost-of-Production, Operating Profits, Project Pay-back and Project’s sensitivity to Government’s policy

Our Recommendation

Re-negotiate pricing for select parts, request for additional parts and assure M-o-Q to justify the investment-to-returns.

Client Results

A clearer picture helped client to decide confidently minimum viable project size and prepare a realistic roadmap of the business.

Electronics