High tech systems

High tech systems are a core business for European manufacturers, whose excellent technological positioning allows them a more export-driven business model than machinery producers. Manufacturers enjoy a comfortable position as the entry barriers for potential competitors from emerging markets are high and the overall market size is limited in most cases. However, competition is growing and pressure is increasing on manufacturers.

In many cases, manufacturers focusing on the mass market must gradually enter the mid-end segment to survive against the competition. They require market presence and a good understanding of market dynamics. Along with this shift of focus comes the need for various actions, including:

• Re-engineering existing high-end products to meet mid-end requirements
• Adjusting the product portfolio accordingly
• Relocating parts of production to local markets in order to compete with the low cost structure in the mid-end segment
• Developing products in tandem with local market experts to meet individual needs
• Reducing the number of suppliers and carefully selecting local ones in order to reduce procurement costs and increase bargaining power

Manufacturers focusing on niche markets in the high-end segment mainly face problems relating to their internal cost structure, sourcing strategy, product diversification, potential technological substitution and technology partnership strategy.

The field of high tech systems offers many opportunities. Our projects are diverse, covering all the relevant functional fields. They include production relocation projects, strategies for defending against emerging low-cost producers, market penetration strategies, mergers and acquisitions work and R&D projects.

We help companies develop growth, sales and sourcing strategies and provide international market know-how for customers interested in production relocation, joint local R&D and internationalization in general.

We support a wide range of technology leaders in the industry. We help our clients identify and evaluate opportunities, manage challenges and implement the changes needed as a result of global megatrends. Recent projects include:

• Developing a restructuring concept, international growth strategy and investor presentation for a leading manufacturer of high-tech components for the power electronics industry
• Supporting change management at a leading security smart card producer
• Scenario planning in the wake of the nuclear disaster in Fukushima for a leading German car manufacturer, including developing a supply risk mitigation strategy