• Sensorio Hightech GmbH is a leading manufacturer of technically advanced consumer electronics sensors based in Germany with EUR 500 m in revenues
• Foundation in 2005
• Fully owned subsidiary of large industrial manufacturer based in Germany
• Develops and markets a wide portfolio of MEMS (Micro Electro-Mechanical System) sensors and solutions tailored for smartphones, tablets, wearables and hearables, AR/VR devices, drones, robots, smart home and IoT applications
• Global player with regional presence in major cities
• C. 500 employees in 2021
• Strong focus on R&D with excellent capabilities in innovative sensor technologies & supporting software development
• Company history so far:
  • 2016
    • Launch of first gas sensor targeting Smartphone application
    • Sales channel: focus on OEM
    • Learning: gas sensing didn't find application in high volume smartphone applications so far
  • 2018
    • Opportunistic approach toward sales of environmental sensors via distribution channel
    • Sales channel: focus on SME 1) and distributors
    • Learning: sales via distribution channels brings Sensorio Hightech GmbH far away from customer/use; difficult to identify growth areas
  • 2021
    • Launch of more advanced gas sensor, the first gas sensor with Artificial Intelligence (AI) and ability to detect Volatile Organic Compounds (VOCs).
    • In addition, launch of AI-Studio enabling customers to train the gas scanner on their specific application, like in home applications, IoT products or smart home
    • Sales channel: focus on SME and distributors
  • Future
    • Address use-cases in the area of residential smart home existing and well- established today, which can be extended to environmental sensors
• They have 4 key products in their portfolio:
  • Motion Sensors
  • Environmental sensors, e.g.,
    • Highly integrated four-in-one gas sensors
    • Barometric pressure sensors
    • Humidity sensors
  • Smart sensors, e.g.,
    • Microcontroller in a single, small frame, with a variety of interfaces to connect external devices
    • Optical microsystems

• The advanced consumer electronics sensors can be divided into four groups – motion sensors, environmental sensors, smart sensor systems and optical microsystems
• Environmental sensors are most relevant for the smart home sector

Interviewees need to identify the 6 possible smart home segments, as shown in exhibit 3:

• Control and Connectivity
• Smart Appliances
• Security
• Home Entertainment
• Comfort and Lighting
• Energy Management

Interviewees need to come up with several evaluation factors which they are able to evaluate with the data/information given in the case. Exemplary evaluation factors:

• Market size (Revenue)
• Growth
• Profitability
• Potential fit to Sensorio Hightech GmbH's sensor portfolio

Four external factors drive the development of the smart home market currently

• Increasing importance of the home in post-COVID “new normal”
• New business models around smart home
• Tech. giants drive smart home ecosystems (Amazon, Google, etc.)
• Technological progress regarding IoT devices and “Smart Assistants”

There is no wrong or right solution, as long as the reasoning makes sense, but arguably Smart Appliances and Security are the most attractive markets to enter due to market size, growth, profitability and the existing sensor portfolio of Sensorio.

After having identified the target segment, a high-level go-to-market strategy should be drafted. 

Interviewee should come up with relevant dimensions. If the interviewee struggles to identify relevant dimensions, suggest the following topics:

• Product
• Place (Regional Focus of value chain – R&D, Production, Sales, etc.)
• Promotion (Sales Channels)
• Target Customers
• As well as elaborate on USPs and market specificities (e.g. technology, data security, flexibility, etc.)

There is no right or wrong answer to the go-to-market strategy. This question is rather testing the creativity of the interviewee.