Case Study 6
Engagement Type: Analysis of Target's Customers and Prospects
Client Profile: A multi-billion dollar European holding company with a diverse portfolio of technology businesses.
Our client had identified an opportunity to expand into the market for information technology used in the utility industry. The client's existing portfolio of businesses included companies that operated in industries related to power generation, storage, and transmission, but the client had no direct experience in the market it sought to enter. Nevertheless, the client believed a significant opportunity existed even if it meant moving into businesses that fell outside of its comfort zone. The client had identified a target and needed assistance evaluating the strength of its products relative to rapidly changing market requirements.
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8 billion Euro global buyout fund
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Core Issue Set
- Why have the early adopters of this technology migrated to it?
- How favorable / unfavorable has the experience of early adopters been, and what are their plans for continued investment in the customer's class of solution?
- What is core value proposition for the class of solution offered by the target, and is the target well-positioned to support this value proposition?
- How are customer requirements and market segements evolving and how easy or difficult will it be for the client to migrate its offerings to meet these changing requirements and serve these new market segments?
- Conduct deep-dive interviews with senior executives responsible for specifying, purchasing and maintaining the customer's class of solution.
- Perofm a detailed analysis of the evolving competitive landscape in the target's current and emerging markets.
- Create market develop scenarios illustrating how customer requirements are likely to evolve over time and the implications for the target's business.
As a result of engaging with VDC, the client elected not to pursue the acquisition.
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