Client: An internationally successful producer of Intercom products for offices, stores, stockrooms and mines.
Situation: After a good start, continual declining sales and profits in home market and internationally. Slow sales of the newest products.
Issues: How to achieve sustained profitability. How to define best product/market strategies for additional growth and profits.
Findings: Company facing growing competition from Internet solutions, but market for internal telecom systems still large and increasing. Through Advanced Segmentation of each product & market and key users, Business Strategy BSAG found that attention to entire product line was needed, not only to the most advanced or unique products that brought less profit and were not yet in full demand since marketing approaches were not sufficiently well-pointed.
Solutions: Refocusing on most profitable products, segments and geographical markets, de-prioritazion on other segments. Cost-cutting and reorganization to regain overall and sustainable profitability. Emphasis on market and user oriented product development and more effective sales in selected international markets with substantial potential.
Implementation: Recommendations by Business Strategy BSAG were accepted and implemented in considerable detail at HQ and worldwide.
Results: Substantially enhanced success for the company following successful implementation and during the years that followed.