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STRATEGY DEVELOPMENT AND IMPLEMENTATION FOR SUSTAINABLE INCOME INCREASE

Client: Electronics manufacturer

Sector: Electrical industry

Project duration: 17 months

Revenue: 0.8 bn EUR

Contact: Dr. Arno Haselhorst

STRATEGY

European companies need to refocus on Asian competition

The global market for electrotechnical and electronic products will continue to grow in 2014 and 2015 as a result of digitization and further grid expansion. While growth is mostly taking place in the US a pace of 4% and above all in the Asian economic region - at a pace of 6%, market volume in Europe stagnated already in 2013. Asian manufacturers dominate mass markets and dictate conditions in the B2B sector as major suppliers. With increasingly higher product quality, they can produce more cheaply than European companies, which often are not able to withstand a strong price war.

A way out may be concentration on specific segments and technologies. But Asian competition continues to penetrate even the niche markets. In order to remain competitive in the long term, European companies are forced to relocate development and production to low-wage countries and efficiently position product development in order to optimize development phases.

  • Development of a uniform strategy for individual business and functional areas

  • Implementation of the strategy in organization and processes

  • Reduction of complexity of the organization

  • Increasing transparency of the corporate group

  • Identification of strategic options after internal and external analysis

  • Strategy formulation for a group of companies and each division (including strategy validation and consolidation, valuation and backplanning)

  • Strategy implementation: Planning of measures and implementation, development of a monitoring system, adjustment of management and organization

  • Increase in total return on capital to 16% by 2018

  • Increased transparency of product development process and between the divisions

  • Integration of subsidiaries

  • Development of a new innovation process