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Prize winner
Published by:
IMD (1990)
Version:
20.03.2013
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'.
Settings:
Sweden, Bearings, 1987-1989, CHF25.1 billion sales
Prizes won:
1995 - ecch European Case Awards - category runner up
1997 - ecch European Case Awards - category winner
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