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Compact case
Subject category: Marketing
Published by:
Institute for Management Development (IMD) (2009)
Revision date:
1 pages
Data source:
Field research


This is the second of a three-case series. This case is the follow up to Value Selling at SKF (A) and updates the students on important decisions and events. The president of the service division has decided not to participate in Steelcorp's reverse auction. But the company's distributor has managed to arrange a meeting between Steelcorp and an SKF sales executive. This could be a last chance for SKF to win Steelcorp's tough procurement manager over to its total cost pricing. But there is also a significant chance that value selling may backfire. The student is to devise a negotiation strategy for the upcoming meeting. At least $4 million rides on the success or failure of the negotiation.


Value pricing; Industrial selling; Industrial distribution; Channel conflict; Commoditisation; Negotiation; Reverse auction; After sales service; Industrial marketing; Key account management (KAM)
USD8.2 billion

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