The client is a manufacturer of power generators for recreational vehicles. They are the dominant player with close to 90% market share. They attribute their market share to their high-quality products.
Our client sells only to original equipment manufacturer (OEM) suppliers. There are two types of OEM suppliers: sole source and dual source. Dual source implies that the suppliers has multiple generator manufacturers to choose from. Close to 95% of our client’s sales comes from North America and the remaining 5% comes from Europe.
Smaller players, who have between them 10% of the market share, have recently been improving their product quality. This is posing a strong threat to the client. Our client has a strong brand and is a trusted name in the market.
The client is worried about profitability in the coming years. What would you consider in addressing profitability?
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