How can a rail infrastructure equipment provider expand its market share by identifying the most profitable target markets?
hpo Practical Case Mobility
Switzerland is a showcase country for rail-based transport, both in terms of the number of annual train journeys per person and the utilization of the rail network or system control via the integral interval timetable. As the volume of passenger and freight traffic rises sharply, demands for excellent rail infrastructure and the associated investments are also increasing. This makes Switzerland an extremely attractive growth market for providers of railroad technology services.
hpo conducted a systematic market analysis for the go-to-market strategy of an infrastructure provider for traction current systems. Based on this analysis, we forecasted the further development of the market and developed the most lucrative options for action in the medium and long run.
Systemic overall view as a success factor for formulating a go-to-market strategy.
The basis is a well-founded assessment of decisive developments in the market.
Budgets in the billions are available for mega rail infrastructure projects such as “Leman 2030” at Lake Geneva. A large number of smaller network operators ensure a repeated need for expansion and upgrading of tracks and traction power networks throughout Switzerland. A wide range of courses of action is available to companies wishing to enter the market or gain market share. Do they focus on individual customers and customer segments, or do they aim for an attractive offer to the market as a whole? Which regions of Switzerland, with their different linguistic, cultural, and topographical requirements, are particularly interesting?
Aim of the Project
In this specific case, hpo was tasked with evaluating the market potential and identifying growth opportunities for a medium-sized supplier of traction power systems.
Approach
External view—market demand and competition
Central to the definition of the expansion targets was the in-depth understanding of the current and future needs of different regions and customer segments in the traction power sector. For this purpose, hpo conducted representative interviews with decision-makers of Swiss rail network operators who are responsible for the construction budget. At the same time, changing customer requirements were uncovered, which necessitated further development of capabilities and services. In addition, the intensity of competition was identified by analyzing the service portfolios and market shares of all relevant competitors.
Internal view—strategy and capabilities
The shortlist of attractive expansion opportunities was compared with the customer’s overall strategy and existing capabilities and resources. It was found, for example, that further development of certain organizational competencies was inevitable for long-term competitiveness. It was also determined that some options could be implemented with manageable effort, while others would potentially overwhelm the organization.
The Result: Selective Expansion
The analysis made it clear that successive selective expansion of the offering in some regions and segments was clearly preferable to other options. The findings allowed the client to determine a go-to-market strategy for the planned nationwide expansion in line with current capabilities and future strategic direction. As a basis for further go-to-market activities, hpo developed a framework that enabled a clear definition of market development mechanisms, acquisition channels, and services offered.
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