View
224
Download
0
Category
Preview:
Citation preview
8/11/2019 Manufacturing Megacities copy
1/8
Megacities
discovering potentialHow to approach this new market
Emergence of a new market/channel
huge untapped potential for Nordic companies
25 megacities: 470 million inhabitants a market larger
than the European and US marketsInvesting in urbanisation the example of China
New G2M approach needed from "micro-thinking" to"macro approach"
Reaching an attractive position four elements to address
8/11/2019 Manufacturing Megacities copy
2/8
2
Quartz+Co is setting a new agenda concerning megacities as a potential
new market/channel for many Nordic companies
Quartz+Co works withseveral customers forwhom the megacities ofthe world are becominga very attractivesegment however, the
key issues are How to structure the
go-to-market model?
What product/solutionto offer to whom?
Whom to partner within order to be part ofthe "game"?
Source: Quartz+Co feature in Berlingske Tidende, October 2011
8/11/2019 Manufacturing Megacities copy
3/8
3
Today, there are 25 megacities in the world with a combined population
of 470 million inhabitants a market that is greater than both theEuropean market and the US markets
470
Top-25megacitiesin the world
399
EU15
313
USA
Tokyo
(34.3 million)
Top-25 megacities in the world with estimated populationsInhabitants
Comparison of population sizeMillion inhabitants
Note: Population figures are from July 2011. Figures include urban areasSource: CIA World Fact Book
Jakarta(18.9 million)
Seoul(25.1 million)
New York City(22 million)
Mexico City(22.9 million)
London
(12.5 million)
Moscow
(14.8 million)
Kolkata(16.6 million)
Mumbai(23 million)
Osaka(16.7 million)
Manila(20.3 million)
Rio de Janeiro(12.5 million)
So Paolo(20.9 million)
Buenos Aires(14.4 million)
Istanbul
(13 million)
Tehran
(13.1 million)
Lagos(12.1 million)
Karachi(17 million)
Cairo(15.3 million)
Dhaka(14 million)
Guangzhou
(25.2 million)
Beijing
(13.9 million)
Shanghai(24.8 million)
Los Angeles(18.1 million)
Delhi(23.3 million)
8/11/2019 Manufacturing Megacities copy
4/8
4
The pace of the world's urbanisation rate will continue, and future
investments are expected to be significant
2010 2015 2020
Rural
areas 50%
(6.84)
48%
(7.22)
46%
(7.57)
2025 2030
43%
(7.91)
41%
(8.22)
50%Urbanareas
52% 54% 57%
59%
Share of the world's population living in urban areasPer cent (billion people)
Example of Chinese investments in megacitydevelopments
China is planningto invest DKK1,800 billionacross 160infrastructureprojects over thenext years to
merge nine citiesin South China,creating a citywith 42 millioninhabitants
Total investment in urban infrastructure in Chinaover the next five years is expected to hit GBP 685billion, with an additional GBP 300 billion spend onhigh speed rail and GBP 70 billion on urbantransport
British Chamber of Commerce
Source: World Economic Forum; The Economist; British Chamber of Commerce
8/11/2019 Manufacturing Megacities copy
5/8
5
The traditional go-to-market approaches will not be suitable when
addressing this new market as demand is moving from "micro-thinking"to "macro approach", introducing new decision models in the market
Traditional go-to-market approach Market approach towards megacities
From a micro-thinking approach with multiple customertouchpoints across sectors
to a macro approach where purchasing decisionsare co-ordinated and made on an aggregated levelacross sectors
ILLUSTRATIVE
Suppliers Suppliers Suppliers Suppliers
Energy Transport Water Buildings
Energy Transport Water Buildings
Master-planning
uppliers
8/11/2019 Manufacturing Megacities copy
6/8
6
The change in market logic will drive a shift in demand from single
components to integrated infrastructural solutions consisting of multiplecomponents, advising and services
Energy production
and distribution
Component
Component 2
Component 3
Component 4
d
s
o
y
n
a
a
o
S
v
c
n
Megacities are demanding integrated solutions in whichpreviously independent components and services are bundled
ILLUSTRATIVE
8/11/2019 Manufacturing Megacities copy
7/8
7
Megacities is one of four key strategic focus areas for Siemens and an
opportunity for the company to leverage its diversified portfolio to onedefined customer segment
The new Infrastructure & Cities
Sector will manage the company'sglobal business with cities andinfrastructures. The new Sector, witharound 87,000 employees, willcontain the Mobility and BuildingTechnology Divisions from the
Industry Sector, as well as the PowerDistribution Division and Smart Gridbusiness from the Energy Sector.
Siemens September 2011
CASE
8/11/2019 Manufacturing Megacities copy
8/8
8
In order to obtain an attractive position within the megacity
market/channel, a potential player needs to address four elementsUnderlying issues
Product
offering
To what extent is your stand-alone offering unique and innovative in the market in termsof other solutions from competitors and substitutes?
Organisationalcapabilities
What are the organisational requirements needed to be able to address this newchannel/market?
To what extent do your current competences match the needs?
How can your company best succeed in the market with the new channel needs andmarket logic?
As a stand-alone company only offering own products and services Through partnerships with other players offering more integrated solutions
Go-to-marketmodel
Business
strategy
How, and in what order, should you address the different subsegments in the market(cities/geographies)?
Recommended