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Company case by Roland Berger

Roland Berger Case: Sensorio Hightech GmbH

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Case Prompt

Sensorio Hightech GmbH is a leading manufacturer of technically advanced consumer electronics sensors based in Germany with EUR 500 m in revenues. It is a successfully growing affiliate with technically advanced consumer electronics sensors as its main business. Sensorio Hightech GmbH is looking at the smart home market for further growth. In addition, the company is aiming to tap into new regional markets.

You are a member of a consulting team mandated by Sensorio Hightech GmbH to:

assess possible new target segments in the smart home market
(optional – if there’s time left: recommend go-to-market measures)

The company is looking for a recommendation answering the following questions, taking into account Sensorio’s capabilities and current situation in various regions, the overall market environment, and smart home ecosystem:

Smart home market segmentation & attractiveness analysis (qualitative & quantitative)

What are relevant market segments of the smart home market?
What are potential factors that determine the market segment's attractiveness for Sensorio Hightech GmbH?
Which market segment(s) is/are most attractive for Sensorio Hightech GmbH to enter, and why?

(Optional: Entry strategy (qualitative))

How does the strategy to successfully entering the target segment(s) look like?
What are the crucial factors Sensorio Hightech GmbH needs to get right?
What parts of the value chain does Sensorio Hightech GmbH want to cover?

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Background Information

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Note for Interviewer

Start the case by giving the interviewee an overview of the company, mentioning the following facts:

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

Note for Interviewer

Their current locations and distribution of employees is depicted in the following map: (Exhibit 1 can be displayed to interviewee)

Note for Interviewer

In the following, various possible topics the interviewee might ask about are listed, including exhibits which should be shared with the interviewee. The goal is to overload the candidate with information to test his/her ability to structure information and prioritize it to answer the case questions.

The interviewee should answer the first 3 questions in the named order, using the information given to him (triggered by questions from the interviewee). The solution to each question is provided in the back.