Cobalt Robotics: Finding 13% Growth
Consulting
hard45 min0 submissionsBCG
Scenario
Cobalt Robotics (industrial robotics, Japan) has grown at 3% a year for three years. The new CEO has committed the board to 13% growth — a gap of roughly ¥136 B of incremental revenue in year one.
What we know.
- Current revenue: ¥1359 B
- 981 active customers
- Annual customer churn: 16%
- Estimated share of existing customers' relevant spend: 36%
- The core market is growing at 6% — so the company is roughly holding share
The CEO's instinct is to enter a new geography. The CFO thinks the answer is in the existing base. Nobody has yet sized either.
Supporting data
market
- core market growth pct
- 6
customers
- active customers
- 981
- annual churn pct
- 16
- share of wallet pct
- 36
- average revenue per customer
- 1385321
current state
- revenue b
- 1359
- growth pct
- 3
- revenue gap b
- 136
- target growth pct
- 13
Your task
Build the growth case. Provide:
- Analysis — where growth could come from, sized.
- Risks — of the options you recommend and reject.
- Recommendation — a prioritised growth portfolio for the next 24 months.
Ready to move forward? Up next: Should Corveta Motors Enter Brazil?Next question
How you'll be graded
100 points, 60% to pass.
- evaluation25
- recommendation25
- option generation25
- problem structuring25
Hint
Reveal suggested structure
Decompose growth into five sources and size each:
- Retention — reducing 16% churn
- Penetration — raising 36% share of wallet
- New customers in existing segments
- New products to existing customers
- New geographies or segments
Score on size, speed, cost and risk. The first two are usually cheapest and fastest; the last is usually slowest.