Network Development – A Case Study by Drive Global Insights & Consultancy (DGIC)

In the competitive landscape of the automotive industry, strategic network development is essential for maximizing growth potential. Drive Global Insights & Consultancy (DGIC) has demonstrated their expertise by developing a network realignment strategy for an automotive Original Equipment Manufacturer (OEM) in Saudi Arabia (KSA). This case study showcases the comprehensive approach DGIC employed to enhance efficiency, capitalize on growth opportunities, and align with consumer preferences.

About the Client

The client is an automotive OEM with a robust network of multiple dealers across the Kingdom of Saudi Arabia. Facing intense competition from other global automotive manufacturers establishing operations in KSA, the client aimed to maximize their growth potential by optimizing their sales and service network.

Problem Statement

With all major global automotive manufacturers establishing sales and service operations in KSA, the client desired to maximize its growth potential by successfully contending with market competitors and developing a network development plan to maximize sales and service potential based on the growth of the Saudi Arabian automotive market.

Solutions Provided to Address the Problem Statement

DGIC undertook a multifaceted approach to address the client’s challenges, focusing on the following key areas:

1. Review of Sales and Network Information:
Collected and analyzed sales and network data provided by the client.

2. Desk and Secondary Research:
Utilized industry reports, government statistics, and online resources to gather relevant market insights.

3. Primary Research: Conducted B2C research with over 1000 respondents, mystery shopping, and interviews with market experts.

4. Development of Network Realignment and Expansion Recommendations:

– Reach Maximization: Evaluated and adjusted the current network footprint based on consumer preferences and internal sales, service, and spares estimates.

– Network Expansion: Developed strategies for short to mid-term and long-term expansion based on consumer preferences, identifying critical regions for potential growth.

– Service Potential: Aligned sales, parts volumes, and labor-hours forecast with market potential and competitive landscape.

Implementation and Impact

The network realignment strategy developed by DGIC included a detailed plan for each key city and province within KSA. The map provided visual insights into areas of consolidation, reduction, retention, replacement, and expansion:

• Current Size: Indicated by numbers representing the existing network size in each key city.
• Consolidate / Reduce: Areas marked with red arrows where network size needed reduction.
• Retain / Replace: Areas marked with yellow arrows where the network required retention or replacement.
• Expansion: Areas marked with green arrows indicating regions with potential for network expansion.

Conclusion

Through meticulous research and strategic planning, DGIC successfully provided the client with actionable insights and recommendations to optimize their network in KSA. This comprehensive approach not only addressed immediate challenges but also set the foundation for sustained growth and competitive advantage in the Saudi Arabian automotive market.

With DGIC’s expertise, the client is well-positioned to capitalize on market opportunities, align with consumer preferences, and achieve long-term success.