A large, global engineering firm had a small automotive division focused on providing CAE and FEA services to automotive OEMs and suppliers. This division had failed to show any substantial growth for a number of years.
Griffioen Consulting was hired to conduct a strategic assessment of the division’s strengths and weaknesses and competitive position in the North American market.
The assessment involved a number of internal interviews, project reviews, interviews of clients, as well as a detailed competitor analysis.
Results from the assessment were expected to drive management’s decision-making about the path forward for the automotive division.
The results indicated that the automotive division lacked a clear advantage and differentiation in their engineering analysis technology. Even though they did good work, the division did not stand out in any significant way from competing engineering firms in a very competitive market environment.
In addition, the division lacked brand name recognition and market share.
Also, on a number of projects the automotive division operated as a sub-contractor to other sub-contractors, significantly reducing their visibility to the end-client and their target market.
An analysis of the project revenues showed that the automotive division represented less than 1% of the global engineering firm’s total revenue.
The strategic advice was to close the automotive division and focus on the engineering firm’s core business. A few years later, forced by the lack of growth and market conditions, the division closed.Back to Case Studies