Case Study 3
Powering New Opportunities in Energy Efficient Diesel Engines
Cummins Inc., a global power leader, is a corporation of complementary business units that designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 46,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,500 dealer locations.
After concluding a successful consulting engagement with Eden Strategy Institute in Singapore, Cummins once again selected Eden to conduct a comprehensive strategic assessment of new business opportunities in Indonesia, as part of its Engines Aftermarket growth strategy in the region.
Eden employed a broad stakeholder engagement approach, conducting meetings with the full range of equipment manufacturers, distributors, repair shops, various end-user industries, and government agencies. Current, accurate, and complete data is rarely available in emerging markets, so Eden needed to aggregate data from several major government agencies. This led to the creation of a detailed, national-level database of various industry sectors that superseded even what individual departments had, which formed the foundation of Cummins’ strategy development.
After quantifying the market attractiveness of several new focus areas, Eden worked closely with Cummins and its local distributor to plan a multi-year growth strategy based on its local capabilities, unmet customer needs, local channel dynamics, and competitive white space. Following the consulting engagement, Cummins was able to articulate fresh customer segments for growth, cities to focus on, creative branding and pricing tactics, and innovative value-added services to enhance customer loyalty.
Diesel engines and gensets comprise a considerable proportion of energy production in Indonesia. Today, Cummins Asia Pacific’s holistic strategy is paving the way for low emission engines, supporting the steady growth of giving small business owners in new industry segments, and powering the development of the Indonesian economy.
“Cummins needed to study the Indonesian market in order to identify accessible new customer segments to grow our business. We were confident in Eden Strategy Institute due to our past collaborations, and decided to commission the work to the team. During the engagement, we found Eden’s thought process in arriving at the content to be robust and well-thought out, and I especially appreciated the team’s working style that demonstrated commitment, responsiveness, and flexibility to exceed our expectations. Since the engagement, we have heeded Eden’s recommendations to invest in the opportunities identified, and I am happy to recommend Eden Strategy Institute to other clients as I believe in their ability to deliver a great strategy.”
Jason Poh, Parts Sales & Marketing Leader, NE & SE Asia New and ReCon Parts Business, Engine Business Unit
Cummins Asia Pacific Pte. Ltd.