Wintersemester 2019/2020 - Hoerbiger
HOERBIGER is the market leader for reciprocating compressor components. One of HOERBIGER’s strongest markets is the North American oil and gas industry. There, HOERBIGER’s valves are used in compressors employed for the extraction of natural gas. Whenever such a valve fails, the compressor stops working and extraction comes to a halt. Currently, the maintenance process for such valves is slow and unsystematic. With VISTRA, HOERBIGER aims to introduce a component management software application able to address these inefficiencies by providing users with a digitally-enhanced maintenance process. VISTRA is currently in the final stages of app development and is expected to go live in early 2020.
Aim of the project
The ultimate goal of the project was to provide a comprehensive business plan for VISTRA to be presented to HOERBIGER’s top management. The project team was tasked to consolidate, cross-check and extend previous research by HOERBIGER’s corporate incubator, New Ventures Lab (NVL). Special emphasis was to be put on the finding of suitable marketing and distribution channels and the calculation of multiple financial scenarios based on different possible revenue models.
In the beginning of the project, a visit at HOERBIGER’s Vienna site served to provide the team with a deeper understanding of VISTRA’s functions and value proposition. Using market reports and current sales figures, we considered the overall market potential for VISTRA. Primary market research data from NVL was used to analyze the competitive situation. Subsequently, marketing and distribution channels were derived in consideration of the characteristics of the target market. To identify the most suitable revenue model for VISTRA, four alternatives were compared based on a total of eight different financial scenarios. The calculations were done using basic data from a quantitative market model provided to the team by NVL. Finally, strategic options for VISTRA were derived from a SWOT-Analysis.
The team was able to verify the expected high market potential in the North American natural gas industry. A combination of multiple traditional marketing and distribution channels was identified as best-suited for fast market penetration. From the comparison of revenue models, a clear recommendation for providing VISTRA to customers free of charge was deducted. This “No Fee”-model maximizes revenue via upselling of valve upgrades and cross-selling of HOERBIGER’s repair services.
The above results were finally consolidated into a comprehensive 43-page business plan.
HOERBIGER Wien GmbH
Carola Wandres, M.Sc., Mariella Schultes, M.A.