- Leistung:Markteintrittsstrategie
- Sektor:Technologie
Issue
We have won a major account in Russia – but is there an opportunity to win further business with top-tier car dealerships? What is the best route to market?
Approach
AMR’s senior consultant travelled to Moscow and St. Petersburg and conducted face to face and telephone interviews with every top 20 Russian car dealership, discussing their use of dealer management systems, future IT plans and technical support needs. This allowed us to assess the scale of the opportunity: top-tier Russian car dealerships had very high growth businesses, but for the most part used in-house systems that struggled to cope. Later in the project AMR also met with a number of IT consultancies specialising in the automotive market to discuss our findings and to identify potential market entry partners for our client.
Recommendations
AMR was able to gather sufficient detail to forecast the timing of the top-tier car dealerships switching to new software systems over the next five years. We also mapped the competitive landscape and looked into the reasons for the low share of international software providers in the top-tier dealerships’ market. We concluded that offering robust local technical support is essential to penetrate this market, and that finding a local market entry partner with a sufficient scale of operations, sector expertise and high level of dedication to developing the client’s business is not easy. We presented several market entry options, including working with several local partners and acquiring an international vendor already on the ground in Russia.
Result
AMR’s client entered the market, acquiring an international competitor with operations in Russia as identified in our work
Insight from AMR’s research
AMR’s local knowledge secured face to face meetings with hard to get contacts in a tough market. This provided detail that our client had failed to obtain. The result was a clear, practical route to market.