 |
|
|
|
||||||||||||
 |
|||||||||||||||
|
|
||||||||||
|
Strategy DevelopmentA global commercial MRO provider needed to develop a market entry strategy for a key geographic region absent from their current portfolio. AeroStrategy provided an assessment of future demand, market segmentation, and competitive trends, based on a detailed research program and AeroStrategy’s proprietary MRO database. It was then evaluated in the light of the provider's own competitive position and alternative strategic options for growth were developed and ranked. The client made one significant investment in the region and is actively considering additional acquisitions. A component OEM wished to reassess its aftermarket strategy in the light of changing market dynamics. AeroStrategy conducted detailed internal and external research to provide our perspective on the client’s current and prospective market position. Joint client/AeroStrategy workshops were held to assess and prioritize strategic options, and define follow-through action plans. The client’s strategic plan for the next five years was confirmed and ownership transferred to the client, with agreed timeframes and responsibilities set for implementation. A growth-oriented market leader in pilot and maintenance training wanted to enter a number of new but associated markets. AeroStrategy developed a detailed model of the complex dynamics of pilot and technician supply to generate a forecast for training demand. Then both markets were profiled via a comprehensive market interview program that identified key trends, competitive dynamics, and customer requirements. AeroStrategy worked with the client to synthesize findings and determine market attractiveness and growth options. AeroStrategy identified several growth opportunities but warned that the sector cycle was at a peak. The client elected not to make further investments. Market AnalysisA medium-sized airline was evaluating the necessity of making a significant investment in new hangar facilities. They asked AeroStrategy for an objective assessment of the available third-party maintenance market and the prospects for effective hangar utilization as an input to this decision. AeroStrategy conducted secondary research, an interview program, and market analysis to provide a 10-year assessment of the available market. In addition, potential demand and market share scenarios were developed to help the client properly size their planned maintenance hangar. The airline initiated discussions with high potential customers and alliance partners identified by AeroStrategy and is planning to move forward with the investment The aviation crisis of 2001-2003 put into question the original business case for a new rotary wing aircraft from a leading OEM. A new demand forecast was required as a basis for a go/no-go decision for continuing development investment. AeroStrategy analyzed potential demand over a 20-year period in several end-user segments, including resource development, emergency medical services, law enforcement, military applications, and corporate/VIP transport. A price elasticity assessment was also completed to determine price/quantity tradeoffs. The OEM accepted AeroStrategy's revised forecast as the baseline for their business case and decided to continue the development program. A leading provider of aircraft handling services was seeking new associated service/ geographic markets where it could establish market leadership by acquisition. AeroStrategy conducted a detailed analysis of market size and growth prospects, regulatory and supply trends, and customer requirements in various airport service markets. The analyses convinced the client that its money would be better invested elsewhere. Competitive AssessmentAn aerostructures supplier wanted to develop a comprehensive competitor database as a support tool for sales and business planning at corporate and business unit levels. AeroStrategy built a detailed database of participants in the client’s core product markets, identifying, for example, aircraft program participation, key customers, product and technology strengths, financials, investments, and public strategic initiatives. AeroStrategy also helped the client develop account strategies for major customers. Processes for integrating the use and upkeep of the database into the client’s day-to-day activities were defined. The database is a valued tool that is used by the client daily. An OEM felt it necessary to reassess its market position in the light of the emergence and subsequent success of a new type of competitor group in the aviation aftermarket. AeroStrategy explored the current and future competitiveness of the main supply groups with various customer segments and examined the potential threats, challenges, and opportunities facing the client. A joint client/AeroStrategy team weighed strategic options and developed an action plan to cope with the competitive threat. The client changed its aftermarket strategy and sales approach as a result of the analysis A component OEM wanted to determine the threat to its future revenue stream posed by alternative spare parts suppliers. AeroStrategy worked with the client’s sales force to develop a survey instrument to measure customer interest in alternative parts sources. The sales force conducted the survey. An AeroStrategy/client team evaluated the results, drew strategic implications, and made revenue projections. The client revised its strategic plan and identified acquisitions and alliances to offset the threat of alternative parts suppliers. Customer SatisfactionAs part of a strategic review, a maintenance provider wanted to evaluate customer satisfaction and changing requirements. AeroStrategy designed a novel approach to assessing customer satisfaction based on a mix of direct interviews and surveys. Service and performance failings were analyzed, root causes located, and potential solutions identified. Future customer needs and a profile of the “ideal” supplier were also elicited via a comprehensive interview program. The client was able to implement numerous improvements to its customer service. An OEM’s new management team wanted an independent assessment of its positioning with key customer groups spanning the air transport, regional, and business aviation sectors. AeroStrategy conducted a wide-ranging interview program with more than 50 executives to assess current and emerging needs, perceptions of the client’s performance compared to other suppliers, and to identify opportunities for improvement. AeroStrategy then segmented customers by purchasing behavior and ascertained the performance and resources necessary to improve satisfaction with each group. The client’s management team took steps to eradicate key shortcomings. Transaction SupportAn investment firm was considering a multi-billion acquisition of a major aerospace equipment OEM and MRO provider. The target’s market forecasts and the sustainability of its technology and strategy had to be reviewed as part of the due diligence process. AeroStrategy’s market expertise and insight permitted them to compare the target’s market forecasts with proprietary market information on hand. The target’s technology position and its sustainability were assessed by identifying the sources of technology advantage and testing these against the latest technology trends and competitor capabilities. AeroStrategy also identified key strategic, competitive, and market threats to the target’s current and future strategic positioning. The investment firm accepted AeroStrategy’s findings, pursued the acquisition vigorously, but was eventually outbid. An acquisition was being examined by the European Commission (EC) competition authorities. The client needed detailed market reports to examine the competition implications of the merger. In addition, AeroStrategy was asked to provide expert witness support at the EC hearing. AeroStrategy authored two white papers to support the merger review. The first covered the size, outlook, and structure of the commercial avionics market (including IFE), while the second assessed the impact of the merger on the maintenance, repair, and overhaul sector. As a result of EC intervention, the planned merger was not completed. A major low fare carrier wanted to buy a significant number of aircraft to support growth and fleet replacement needs. Due to lack of resources, project management and analytical support were required. AeroStrategy project managed the whole evaluation, including building the economic model, operator visits, liaison with Boeing and Airbus, the aircraft/engine selection process, preparation of Board papers, aircraft specification, and contract negotiation. The order for 100-plus aircraft was successfully fulfilled. |
|
