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Published by:
IMD (1990)
Version:
20.03.2013
Revision date:
12-Jul-2016
Length:
11 pages
Data source:
Field research

Abstract

In the spring of 1987 Mauritz Sahlin, Chief Executive Officer of SKF, the worlds largest bearing company, decided to transform the company to improve profitability and return on assets. Production had already been rationalised and was fully automated, leaving little room for savings. Neither could Research and Development expenditures be cut, given the company's reputation for technological prowess and quality standards. The only viable long term solution was to change the strategic orientation of SKF from the production line to the market, which would now be segmented into the before and after markets. The plan required a complex reorganisation of the company with far-reaching consequences throughout the organisation, but there was no other option. Intended to be the springboard to a new SKF market culture SKF Bearing Services was created, and Malm was asked to be its Chief Executive Officer. This case is part of a series, which includes SKF Bearings: Market Orientation Through Services (IMD-5-0376) and (B) and (C) cases (IMD-5-0384 and IMD-5-0385). This case was previously numbered '591-019-1'.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Topics

Market-driven change; Services and manufacturing
Location:
Industry:
Size:
CHF25.1 billion sales
Other setting(s):
1987-1989

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Awards, prizes & competitions

1995 - ecch European Case Awards - category runner up
1997 - ecch European Case Awards - category winner

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