Situation
A U.S.-based component manufacturer wanted to better understand an adjacent market opportunity of selling its components to IT datacenter infrastructure manufacturers. The client approached Maia Strategy Group to: 1) Obtain a detailed understanding of the global market, 2) Determine whether the market presented a viability opportunity, and 3) If so, how best to enter it.
Methodology
Using a multi-phased approach that involved extensive primary and secondary research, as well as financial modeling, Maia provided the client with an understanding of the market size, growth trends, and competitive environment. Maia also mapped out the market’s value chain, and showed how IT datacenter infrastructure manufacturers make component selection decisions.
Analysis
Maia’s research showed that a specific type of IT datacenter infrastructure represented the client’s largest addressable market for its components. Maia discovered that this segment represented ~95% of this market, and advised the client to focus the design of its components to address this opportunity. Maia provided the client with sample specifications of product design requirements from leading customers, which allowed the client to assess the feasibility of producing a component that would accommodate customer needs. Additionally, Maia outlined the component selection processes utilized by the leading customers in the market, so that the client could determine the best sales and marketing strategy.
Impact
Maia provided the client with a detailed understanding of the global market, and a roadmap of how to access the specific sector of the market that provided the greatest near-term opportunity. Maia also highlighted the risks associated with choosing to enter the market. The client ultimately decided to enter the market, and utilized Maia’s research to make an informed decision about its strategy for market entry.