AUTOMATEN TECHNIK BAUMANN (ATB). Harvard Case Solution & Analysis



Automaten Technik Baumann (ATB) is a medium sized service sector organization, whose Business Model is based on selling parking, public transport & providing vending machines to businesses. ATB started its business back in 1985, from that time it carriedsignificant improvements to its business model. In September 2015, Volkswagen (VW) Financial Services acquire 92% holding in Sunhill Technologies (Sunhill) Europe largest mobile parking & ticketing solution provider, mobile payment solution gaining significant attention from early 2000, the new digital paradigm shift created a potential business threat for ATB as it provided parking meters for on-street & off-street parking it mainly operates in market of UAE and Europe. Following the development of parking app, customers are switching to online parking payment solution, parking tickets provide good source of revenue to municipal authorities, anticipating the trend, more municipalities are approaching digital solution providers as this reduces their maintenance and operating costs, it was also discovered, in a recent downward revenue trend review of ATB, that the average number of parking lot covered by parking meters has increased from 15 to 25 highlighted the possible existence of mobile parking, that in turn reduces the demand for physical parking meter. All these factor and the entrant of many new small competitors possess significant threat to ATB sustainability & reduces its profitability.
AUTOMATEN TECHNIK BAUMANN (ATB). Harvard Case Solution & Analysis

Key issues identified:


  • Increased number of new interact in the market, due to low initial investment &technological development.
  • Reduction / threat to retain existing market share, adversely effects profitability & in the long run possess going concern threat to ATB.
  • The maintenance & operating cost for parking meters is relatively high when compared with digital parking solution resulting in increased number of customers move toward mobile application.
  • Following the recent takeover of Sunhill by Volkswagen, creates significant threat to ATB as Volkswagen is having ample financial resources to back-up Sunhill research base to provide a more sophisticated &more user friendly mobile application to its customers that will help in increasing its current market share.

Internal Analysis using VRINE Model



‘Resources are said to be valuable only if it enables the business to take advantage of opportunities available & drive back possible threats in its environment’. In the case of ATB it has a huge potential to increase its share off-street parking, as its estimated yearly revenue within Europe is around € 21.9 billion, ATB need to restructure its resources to focus more on off-street parking as it specializes in manufacturing parking meters, on the other hand try to acquire technical skills to develop mobile parking solution at it is a substitute of the existing yet diminishing parking meter.......................

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