Diversifying a Component Manufacturer into U.S. and European Markets

Situation

A global manufacturer of automotive components, with a strong foothold in the automotive industry, sought to diversify and expand into adjacent sectors such as industrial automation and consumer electronics. Although the company had achieved record revenues in its core business, leadership recognized the need to sustain growth by entering new markets across the U.S. and Europe. The challenge lay in understanding rapidly shifting industry dynamics, next-generation technology demand, customer pain points with current solutions, and the competitive strategies shaping the future of these sectors.

Solution

We developed an expansion study across both the U.S. and European markets. Through expert interviews with interconnect and component manufacturers, we gained insights into procurement behavior, supplier selection, and how next-generation technologies were shaping buying decisions. Secondary research from more than thirty databases was used to benchmark competitor pricing, map supply chain relationships, and examine operational practices. We also studied competitor strategies in forming partnerships, alliances, and distribution models, helping the client understand how other players had entered new markets successfully.

Results & Benefits

The project revealed specific subsegments in industrial automation and consumer electronics where adoption of next-generation components was accelerating. The client gained a roadmap that linked product development priorities to customer demand, as well as insights into how to structure partnerships to accelerate entry. By clarifying competitor positioning and supplier relationships, the client could confidently target sectors outside automotive, creating a credible diversification strategy that would open new revenue streams while reducing reliance on a single industry.