A Swiss company that converts trucks to electric drives using self-made powertrains was faced with a fundamental strategic decision.
Its core competence was the complete conversion of diesel-powered trucks to electric drive. On the one hand, this business was lucrative, but on the other hand it was characterised by a lot of manual work. The orders were mostly one-offs and the potential for increasing effectiveness and growth was low.
Should the company continue to be organised as a generalist and work like a manufactory, or should the company specialise and concentrate fully on the production of powertrains?
Continuing to operate as a manufactory required no changes and no investment, but it carried the risk of being displaced by competitors in a few years. Specialisation offered the chance to increase production efficiency, reduce unit costs and achieve a strong expansion of unit numbers. However, this strategy required high investments and the willingness of the shareholders to finance them.
We supported the managing director in analysing the strategic alternatives, substantiating them with figures and presenting them to the shareholders in a clear and comprehensible way.