Define winning strategy for high-tech player to enter mass market

Situation

One of the main product divisions of a visualization technology manufacturer has been market leader in the high-end niche verticals for several years. They are generally acknowledged as technology leader, offering revolutionary specs for the most sophisticated use cases. Due to changes in the underlying technology, they noticed at the same time how low-end mass-market players were targeting better specs each year. This leading to an emerging high-volume mid-end market, where the manufacturer believed they also had a game to play. The product division VP requested Addestino to analyze this market and define what portfolio and go-2-market strategy would result in the best play given the technological differentiators the enterprise holds today.

Challenge

The question what portfolio to launch for the mid-end market had been vivid for many months with product management who had collected already many market reports. With the upcoming quarterly review cycle, they had been requested to present the go-2-market options to the board. With only 2 months to define the strategic plan there was an urgency to accelerate the analysis and explore some strategic options in depth.

Why Addestino?

Addestino has a deep & broad technological expertise needed to define this strategy, including previous experiences in visualization technology roadmaps. As both customer demand and competitive advantage are mainly driven by technological innovations, a deep understanding of the product, its value chain and production process is necessary to define the right conclusions about market size, competition, and differentiators. Addestino excels at this intersection between technology and business.

Solution

Together with the customer, Addestino determined the mid-market strategy in three iterations. In the first iteration, Addestino performed a multi-dimensional analysis looking at all aspects of the to be addressed market (including market size & evolution, sales verticals & channels, risk of substitution & competitive landscape). These results were each time coupled with the technological trends driving demand & pricing. Here Addestino even made an in-depth comparison of the bill-of-material of several competitor products.

In the second iteration, Addestino made an in-depth exploration of the four most likely scenarios (from M&A, to R&D and new Go2market models). For each case they elaborated on the financial, technological, and strategic risk. In the final iterations, the different options were merged to a hybrid strategy which was recommended to the board and CEO.

Impact & results

In two months, Addestino delivered

  • A 360° market analysis underlying the technological forces and innovations driving demand and supply in the market
  • An in-depth exploration of the four most likely strategic options, elaborating on financial, technological, and strategic risk in each case
  • A hybrid strategic plan that was recommended to the board and CEO