CASE STUDIES

Industry Risk Assessment: Assessing Risks Affecting the Realization of Different Strategic and Tactical Goals for an Auto Parts Manufacturer

May 25, 2018

Amid wrenching changes in global economies and market dynamics, players in the global auto parts market must prepare for the transformations brought on by the preference for digitization and convenience.

The global auto parts market has been an integral part of the economy ever since the discovery and commercialization of automobiles itself. Even today, the auto parts market remains highly essential – and both the medium and small-sized auto parts manufacturers play a critical role. A wave of technology-driven disruptions and the popularity of autonomous functionalities are compelling automakers to enhance productivity to respond quickly to the changing market landscape.

Like companies operating in other sectors, companies in the auto parts market also face unique challenges that they must address immediately to create a long-lasting success. Environmental constraints and regulatory factors act as major constraints for players in the auto parts market; thereby, pressurizing auto parts manufacturers to leverage state-of-the-art technologies to meet the new requirements.

The Business Challenge[spacer height=”10px”]

  • The client: A auto parts manufacturer

With an objective to identify market risk, the client – a leading player in the auto parts market – approached Infiniti to engage in an industry risk assessment study that would help them analyze the global automotive landscape and assess market risks while considering the assumptions and uncertainties in the global auto parts market. The main objective of this risk assessment study was to gather targeted information about industry risks that pose potential pitfalls to the business operations.

How Can Risk Assessment Help Companies in the Auto Parts Market?[spacer height=”10px”]

In today’s regulatory environment, effective risk management is increasingly becoming important for organizations across sectors. Risk assessment studies enable organizations to gain a holistic view of the potential risk factors that they face – allowing them to manage risks and capitalize on the opportunities. Also, several regulatory bodies have made it mandatory for organizations to have a detailed understanding of their risk profiles to implement the appropriate governance structure and mitigate their risks.


Summary of our risk assessment solution

Auto Parts Market

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Client Journey[spacer height=”10px”]

To help the client gauge numerous factors influencing their growth in the auto parts market and assess the overall brand perception, the risk assessment experts at Infiniti followed a strategic research approach. The approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures. The experts also reached out to various stakeholders and stakeholders in the auto parts market.

Solution Benefits and the Business Impact[spacer height=”10px”]

With the aid of Infiniti’s risk assessment engagement, the auto parts manufacturer was able to devise a risk library that provided a framework for the risk management process. The impact and likelihood values were also assigned to each risk factor based on certain risk criteria – current risk mitigating strategies, the frequency of occurrence, impact, and previous occurrence. Moreover, the client also gained significant insights on the auto parts market landscape – bringing about substantial changes in the company’s overall risk profile.

The Future[spacer height=”10px”]

A technological movement stemming from innovative initiatives and large R&D budgets by some of the world’s leading automotive companies are powering a connected and autonomous vehicle phenomenon that will inevitably change the world. With autonomous vehicles becoming widespread, the global auto industry will continue to evolve into innovative technologies and sales models in the future.

Given that the global automotive industry is expected to witness enormous growth in the coming years, there will be a higher preference for sourcing auto parts from local OEM’s, which in a way is a boon for companies operating in the auto parts market.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the auto parts market.

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