CLIENT
Confidential
INDUSTRY
Automotive
SERVICE
Business model reinvention
Situation
Reinventing the business model to lead the eMobility market
The automotive industry stands at a pivotal crossroads as it evolves beyond traditional car manufacturing into an integrated mobility ecosystem. Consumers increasingly demand sustainable transportation solutions - and, in response, established OEMs find themselves navigating a complex landscape of electric vehicles, autonomous technologies, and flexible ownership models, while competing with agile BEV startups and tech giants.
This transformation extends far beyond simple product evolution. It represents a fundamental reimagining of the entire business model and mobility value chain, from manufacturing and supply networks to digital services and customer relationships.
A European automotive manufacturer engaged Strategy& to strengthen its position in the eMobility market. After thorough analysis, our automotive consulting team focused on driving innovation in battery systems and cell technology - critical components to achieve competitive product performance and costs across the supply chain.
Solution
Three project phases
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Phase 1: (Re-)orientationThe initial phase focused on establishing the groundwork for business model reinvention involving comprehensive market analyses, technology evaluations, and competitive assessments to identify key differentiators. Additionally, we developed a collaboration strategy to identify potential partners and facilitate due diligence.Working with our global Strategy& network, we identified critical growth drivers, differentiating capabilities, and development targets. We evaluated current technological capabilities and emerging innovations in emerging battery and cell technologies, examining key factors such as cost, energy density, and cycle lifeNext, we defined the client’s required future capabilities based on market insights and created a detailed transition roadmap from their current specification-only model to in-house manufacturing of key technologiesAdditionally, we created a framework for building essential competencies and market differentiators, identified potential partners, and supported due diligence activities. Our focus was on scaling partnerships to complement internal capabilities in development, production, and procurement -
Phase 2: TransformationIn the second phase, we concentrated on creating a competitive product portfolio by adopting a strategic modular approach to enhance performance, scalability, and cost-effectiveness through continuous technology and cost optimization. Organizational transformation was crucial; we established the level of engagement across key components, determined the necessary R&D organizational structure, and identified opportunities for internal transformation as well as essential external hires.We developed a comprehensive technology roadmap along with a platform and module strategy, emphasizing battery system concepts, standardized high-voltage components, and system upgradability to enhance performance and scalability throughout the product portfolioWe initiated continuous improvement efforts through virtual benchmarking and design optimization to boost performance and cost efficiency at scale. This included making strategic make-or-buy decisions for key components to advance battery and cell developmentFinally, we addressed continuous improvement efforts through virtual benchmarking and design optimization to boost performance and cost efficiency at scale. This included making strategic make-or-buy decisions for key components to advance battery and cell development -
Phase 3: ExecutionIn the final phase of the consulting project, we helped the client establish a robust supply chain, including a new supplier ecosystem, and implemented should-cost modeling to reduce expenses. Furthermore, we utilized our extensive operational expertise to provide hands-on support, ensuring a successful production ramp-up.Working closely with the client’s internal teams, we established a robust supplier ecosystem and supported production ramp-up. We analyzed critical materials and product supply chains, developing strategic price scenarios and risk mitigation strategies for essential materials like lithium and cathode active materials (CAM)We implemented advanced should-cost modeling and commercial validation processes to strengthen supplier negotiations and improve product costs. This included developing stage-gate KPIs for quality controlWe achieved production targets by providing hands-on operational support and management, effectively reducing scrap costs and stabilizing production processes to meet end-of-line testing requirements.
Results
Project achievements
Through this comprehensive three-phase transformation, our client evolved from a traditional manufacturer into a leading innovator in decarbonized mobility. The transformation achieved:
- Technological advancement, with the development of new capabilities in battery and cell technology
- Organizational growth, with the cultivation of essential competencies for the eMobility era; and
- Supply chain innovation, with the establishment of a resilient supply network for electric vehicle production
The success of this strategy consulting project is demonstrated by consistent market growth and significant reduction in fleet-wide CO2 emissions. The client’s eMobility offering now serves as an industry benchmark for range and cost across its entire product portfolio.
Our business model reinvention strategy in this project was built on deep market and technology insights, recognizing battery and cell technology as key differentiators in an industry where eMobility is projected to dominate from 2030 onward. Our focus areas included battery design optimization, platform strategy development, and supply chain risk mitigation - particularly focusing on lithium supply security. By forging strategic partnerships with cell technology providers and implementing robust cost management strategies, the client is now well-positioned to lead in the automotive industry's electric future.
No matter where you are on your innovation journey, whether you are just starting out or already on the road to reinvention, our sector-specific strategists work with you to evaluate and develop a future-proof business model for your success.
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