Developing a strategic positioning and business model for a window and door manufacturer
The client is the EU’s largest wooden windows and doors OEM, primarily present in the Nordic region, with some additional sales in four other European countries.
- The client needed support in defining a strategic direction for its smart-home initiative.
- The client, having a strong decentralized organization with multiple brands in each market, did not master alignment of its “smart” projects across markets.
- Ongoing “smart” projects were mainly technologically driven, without a defined customer value proposition and business case.
- The management team had not yet developed clear objectives for its short-, mid- and long-term smart-home ambitions, and the organization was not prepared for a “services” business.
Arthur D. Little structured the project in three phases:
- External market analysis
- Internal analysis
- Development of strategic directions in smart home
The external analysis covered EU smart-home trends and developments, including customer behavior, size and monetization potential, as well as key competitors’ activities and value-chain positioning.
The internal analysis – primarily based on workshops with the management and business teams – was structured along five dimensions:
- Smart-home strategy
- Services portfolio & business models
- Partnering strategy
- Organizational set-up
- Technological architecture
Based on the analyses, ADL developed strategic positioning and business-model options for the client (including, e.g., value-chain positioning, technical IoT platform, operating model).
- The management team obtained a thorough analysis including market trends, key-competitor analysis, definition of key value chain-positioning options, business-model designs including related partnering approaches, recommendations on the future operating-model design, and assessment of platform options.
- Arthur D. Little managed to align both the management and the business (operational) teams, i.e., enabled the client to find a jointly agreed strategic direction in smart home and created an understanding of organizational requirements.
- Finally, Arthur D. Little was invited to discuss possible further engagements.