Case Study | 26 August 2025
How an Automotive Original Equipment Manufacturer Enhanced Its Digital Capabilities and Expanded Its Product Portfolio in 2023
Posted by : Sanya Mehra
A U.S.-based automotive OEM aimed to strengthen its position in a fast-evolving market by diversifying its product line and incorporating digital solutions into its vehicles. By using Research Nester’s feedback on supply-demand dynamics and customer behavior, the company successfully found gaps in its portfolio, optimized production strategies, and increased profitability while staying ahead of competitors.
An overview:
A leading automotive original equipment manufacturer felt the need to enhance its software development capabilities and digital offerings across its vehicle lineup. The company aimed to:
- Find new market opportunities through product diversification.
- Close gaps in its existing portfolio by understanding new customer preferences.
- Match its offerings with changing market trends to maximize profitability, targeting over 20% growth.
Research Nester provided in-depth analytical support, using supply and demand modeling to reveal insights into current market trends, customer expectations, and pricing strategies. This enabled the company to develop a competitive product portfolio that resonated with modern consumers.
The Story
The automotive sector is experiencing a profound digital transformation. Innovations in electric mobility, autonomous driving, and connected car technologies have shifted consumer expectations. Realizing this transition, the U.S.-based OEM felt that its present product portfolio lacked the technological sophistication and diversity to compete effectively in a global market. The company’s objectives consisted of:
- Enhancing its electric and hybrid vehicles.
- Incorporating advanced digital features across all its vehicle range.
- Improving profitability by properly coordinating production with customer demand.
However, several challenges hampered progress:
- Less market visibility: The company didn't have real-time insights into customer preferences and emerging vehicle trends.
- Technological integration challenges: Integrating advanced software and digital solutions requires guidance on strategic investment and partnerships.
- Competitive pressure: Rival automakers were rapidly introducing technologically advanced products, forcing continuous innovation.
Understanding these hurdles, the company asked for Research Nester’s expertise to create a structured approach to market analysis, portfolio diversification, and supply-demand alignment.
Our Solution:
Research Nester used its proprietary three-stage CDG (Customer-Demand-Gap) analytical model to solve the OEM’s challenges. The model emphasized three main areas, i.e., understanding customer preferences, identifying product gaps, and optimizing production strategies.
Market and Customer Insights
We conducted an extensive global market analysis to evaluate demand for various vehicle types, including electric vehicles, hybrid models, and high-tech mobility solutions. Following advanced data analytics and customer segmentation, we identified the demographics, and regional demands. This research assisted the production of vehicles with distinctive, unique capabilities, promising alignment with emerging market trends and consumer expectations.
Detecting Gaps with Next-Generation Innovation
By conducting a detailed study of the client’s existing products, we detected areas where digital and technological services were lacking. Our suggestions comprised:
Developing EV and hybrid vehicle models.
Integrating connected car features, such as in-vehicle telematics, advanced infotainment systems, and over-the-air software updates.
Collaborating with technology companies for software development and innovation.
Additionally, we suggested investment in research and development to speed up product innovation and explore emerging automotive technologies.
Supply-Demand Alignment
To ensure that new and existing products were efficiently delivered to the market, we recommended optimizing supply chains and production planning. Hence, the key actions included:
- Collaborating with multiple suppliers to improve component availability and decrease bottlenecks.
- Utilizing predictive analytics to forecast vehicle demand precisely.
- Developing a multi-year production strategy focusing on cost, mobility solutions, and technological enhancements.
By adopting these strategies, the client could align production with actual market demand, reducing inventory costs and assuring the timely delivery of new products.
Additional Recommendations for Sustained Growth
- Employee Engagement and Technology Adoption: Plan internal campaigns to encourage adoption of new technologies and digital tools in manufacturing and operations.
- Data-Driven Decision Making: Build a continuous monitoring system to evaluate supply-demand effectiveness, customer feedback, and market trends.
- Competitive Positioning: Created a differentiated product portfolio that integrates unique features, attracting both existing and new customer segments.
Results
By using a data-driven approach and optimizing its product portfolio, the OEM achieved notable milestones:
- Better Production Efficiency: With a clear idea of vehicle demand, the company optimized production schedules and reduced waste, increasing operational efficiency by up to 40%.
- Expanded Market Presence: New electric and hybrid vehicle launches enabled the company to enter into underserved markets and fulfill rising demand for technologically advanced automobiles.
- Increased Profitability: Strategic portfolio diversification and better pricing decisions resulted in profits from 15% in CY2021 to 25% in CY2022.
- Cost Reduction: Handled inventory management reduced costs associated with overproduction and excess stock, boosting overall returns.
- Better Digital Orientation: Collaborations with software developers and investment in R&D helped in combining digital features, boosting the company as a technology-driven automaker.
- Long-Term Product Roadmap: Constant market monitoring and supply-demand alignment positioned the company to respond proactively to changing customer expectations and emerging automotive trends.
By implementing the strategic guidance provided by Research Nester, the OEM not only broadened its product range but also elevated its market positioning in a competitive industry. The company is now better positioned to deliver innovative, digitally enabled vehicles while maximizing operational efficiency and profitability.
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