Navigating New Ventures Without Competing with Your Own Customers

A Gulf-based group, the majority shareholder in an African automotive company, faced a unique challenge when its new service venture unintentionally positioned itself as a competitor to its own customers.

Utilizing a proven methodology, we guided the management team to explore uncharted market niches. This strategic shift allowed the group to secure a more favorable position by targeting opportunities previously overlooked by their customer base.

However, this move initially led to significant customer backlash, marked by a rising attrition rate. In response, the international conglomerate engaged our consulting firm to address and reverse this trend.

Through strategic workshops, we swiftly pinpointed development areas that were not yet tapped into by any competitors, including those within the group's customer base.

Ultimately, this approach proved highly lucrative. The newly established subsidiary thrived, capitalizing on these fresh niches and creating a 'blue ocean' strategy that avoided conflicts with existing customers, thereby ensuring both profitability and peace within the market.