Our client is the world’s leading consumer durable company with over $20 Billion in annual revenues. As a market leader in the US, it was seeking to expand its growth in the emerging markets of India and China. It’s understand of the markets was limited. Additionally its products were more aligned to US market consumer needs in terms of features, functions & price. Lastly it did not have a clear idea of how to enter the Indian and Chinese markets – greenfield, JV or acquisition.
Cedar leveraged its global expertise in assessing opportunities and developing market entry strategies to ensure successful entry.
- It leveraged its expertise in the Delphi technique in assessing the market opportunity from a economic, regulatory, demand, channel, and competitor standpoint.
- More importantly it forecast future trends and the critical success factors for the client to succeed in the market.
- It determined that an acquisition would be the right way to enter to give it a platform to build on which would accelerate its entry into the market.
- It assessed the product preferences of Indian consumers, identified potential designs and costed out the cost of manufacturing certain products in India.
The strategy developed by Cedar resulted in the one of most successful entries of a consumer durable company in India with a very large acquisition of a leading player.
- It’s current India revenues now exceed $ 750 million. It is now the market leader.
- Based on the 1st acquisition with a plant that Cedar helped the client do, the client now owns 3 plants in India with over 2000 employees.
- It transformed the retailing of consumer durables in India, including consumer durable finance.
- It is a case study of one of the most successful globalizations of a F500 US corporations.