Manufacturing
Open Options’ unique process and proprietary game theory software have helped guide senior executives in the manufacturing industry since 1996. With our automotive, industrial equipment, aerospace & defense, and other manufacturing clients, we work to craft better strategies to deal with dealers, suppliers, key customers, unions, environmental regulations and foreign markets.
What Does Open Options Do?
- We challenge executives to stretch their thinking and to look at issues differently by explicitly considering the perspectives and motivations of the critical parties involved in the issue
- We provide an effective, structured process to capture organizational knowledge
- We analyze that structured knowledge using proprietary game theory tools to explore the potential competitive strategies and the millions of ways the issue could play out
- We provide a practical action plan to reach the best attainable outcome for our client
- We build deep management consensus and trust on the best path forward
Our Process
Our efficient process consists of five steps:
- Define the Issue
- Harvest Organizational Knowledge
- Determine Players, Options and Preferences
- Reveal Insights with Game Theory Analysis
- Deliver a Trusted Decision and Action Plan
Our Experience
We have worked with some of the leading manufacturers around the world, on projects spanning the following application areas:
- Growth and expansion strategies
- New product introduction
- Pricing and price wars
- Effects of competitor vertical integration
- Dealing with a dominant competitor
- How to deal with a competitor’s new product
- Growing your business in China/India
- Supplier management
- Dealer/Distributor Issues
- Labor Negotiation
- Offshoring
- Developing industry standards
- Joint ventures and IP licensing alliances
- Infrastructure sharing
- Contract renewal
- Regulatory approvals
- Dealing with NGOs
- Corporate alignment between divisions
Related Clients
Case Study Descriptions
Below is a selected list of some of our success stories in the automotive, industrial equipment and manufacturing industries. Please contact us to learn more about our process and to review a relevant case study:
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Growth Strategy – “Finding the Right Path” Show more
A business unit of a major manufacturer needed to grow 10% by making the right investments in four different and complex markets. It could see the challenges but not the path forward. The degree of complexity was daunting and the client had to manage its investments, different markets, regulators and its own corporate parent.
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Long Range Product Planning – “Crystal Ball” Show more
Open Options helped a Fortune 50 manufacturer clarify its 15-year, $1 billion per annum, research budget plan, accounting for anticipated actions by developed and developing nations, established and emergent competitors, NGO’s, and several parallel industries.
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Competitive Positioning – “Backing The Right Horse” Show more
The European division of a large multinational manufacturer needed to invest in and back the right technology to meet increasingly stringent EU based environmental regulations. During the Open Options process, the potential actions and preferences of the client, European competitors, multinational competitors, EU regulators, European and foreign customers were modeled. The analysis led the client to drastically alter its investment strategy, which resulted in Client maintaining its leadership position and market share.
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Overseas Growth – “Crouching Tiger, Hidden Opportunity” Show more
An American manufacturer wanted to establish an export base in China as well as capture the internal Chinese market. Their business model had been based on premium priced products with value added services. In this new arena, they faced a complex mix of powerful players including other multi-nationals, Chinese competitors, multinational competitors, a Japanese partner, and the Chinese Government.
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Pricing and Market Share – “The Rising Tide” Show more
A client with one key competitor and a single product typically experienced very low margins because the firm had initiated price wars in the past. Introduction of an updated product created an opportunity to challenge the competitor and increase market share.
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Labor Negotiations – “Window of Opportunity” Show more
A major manufacturer was faced with difficult upcoming contract negotiations and at the same time was experiencing ongoing cost problems with a money-losing division. Open Options worked with the client to model the available options and interests of the union, the client, and its major competitor. Analysis showed there was a narrow window of opportunity to achieve a beneficial labor settlement and to significantly restructure itself and the industry.
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Negotiating Supply Agreements – “Three Way Showdown” Show more
A large manufacturer was trying to end a history of subsidies to a supplier. However, a powerful union, who wanted continued prosperity at the supplier, represented the workers at both the manufacturer and the supplier. The supplier was a subsidiary of a larger corporation who was not very interested in staying in the business of supplying the Client. Complicating the issue further, internal groups of the Client, such as the Logistics and Labor Relations Departments, had differing opinions on what should be done.
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Supply Chain Issues – “Weak Links” Show more
A global manufacturer faced potentially large cost increases from a key segment of their supplier base. Government regulatory changes impacting the supplier base were the trigger for increased revenue demands aimed at our client. The Open Options game theory process took into consideration the actions and reactions of the client’s competitors, key existing suppliers, regulators, and alternative supplier companies.
What Makes Us Unique
As experts and specialists in solving business issues where multiple players can influence the final outcome, Open Options is unique in several ways:
