Expanding into Global Markets with a Fully Supported Dealer Network

Expanding into Global Markets with a Fully Supported Dealer Network

Valenhold was engaged by a leading manufacturer to break new global markets. By offering end users a fully supported and integrated dealer network, we were able to give miners the quality, reliability and savings they demand – fully backed with local knowledge, facilities and know-how. Which led to significant cost savings, versatile rebuild solutions and additional security of supply for both the end customers and dealers.

OEM dominated market barrier to new competitor entry. High cost and limited access to spares restricted new non-OEM repair opportunities. End users felt their quality and failure concerns were not being acted on.

By focusing on all aspects of the problem, we were able to develop a multi-path market entry strategy that leveraged each partner’s core strengths and capabilities. Our solution was based on three pillars: Cost, Quality and Service.

  1. Cost – Using first principals to build a bottom-up cost model for our dealers and end-users – allowing optimal savings to end clients without sacrificing life-cycle costs.
  2. Quality – With a focus on ‘making it better’ than traditional OEM products, we worked closely with the manufacturer and dealer to develop a superior product. By analysing client data and market feedback, we were able to close gaps in any quality improvements prior to market entry and implement fixes to known issues. Utilising technology developed for high-speed rail, we were able to improve product material and finish to increase service life and extend the mean time between repairs.
  3. Service – By integrating with highly capable local dealers, we were able to offer the same level of service and support to clients at a significantly lower price point. Co-investment by the manufacturer and dealer meant large rotatable pools of equipment could be built up quickly and fleets supported on mass, with significant inventory to support rebuild and failures on-site.

Significant market penetration has been achieved across ten markets, with >600 trucks under rebuild programs and end-users seeing substantial savings. Previously BER systems can now be repaired to ‘as good as new’ at a lower cost than buying second-hand used assemblies. By establishing win-win partnerships based on service, trust and quality products; market entry and sustained growth has been achieved globally.

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