Global Market Assessment For Evolving A Semiconductor Business To A Retail Market Opportunity
Conducted market analysis and developed go-to-market strategy with robust financial analysis to support business case for components manufacturer seeking to enter end-user marketplace.
Our client had a technology licensing business targeting OEMs and distribution sales which had come under IP attack. The client wanted to evaluate the incremental revenue potential that the retail channel could bring to its business. At the same time they needed to understand the incremental cost structure as they had little or no brand recognition in the retail channel for consumer electronics. The company targeted the optical mouse segment as its "first to retail" product category.
Vision & Execution conducted a market assessment and created a scenario-based financial model that enabled the client to evaluate the risks and opportunities associated with several different approaches to entering the retail channel. The model addressed 6 key levers: total units sold, incremental retail customers, total revenue, incremental retail revenue, total costs and incremental costs including those incurred as a competitive response.
The results of this research and analysis enabled the client to make an informed decision about investing the additional capital needed to successfully enter the retail channel. Based on the results of this project the company made the decision to spin off the business unit rather than pursue the end-user market.