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Case Study - Strategy Change Process Instruments Manufacturer
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Starting Point
A mid-size company active in the process automation business has been
acquired after some financial problems by a big foreign industrial
group. A turnaround and re-capitalization of the company was done
successfully however despite of good general conditions the business
cannot be developed further. Top line growth and profitability are
not satisfactory - the company is stagnating. |
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Approach
After a thorough analysis of the company, customer and market, the root
cause is identified as (1) wrong strategy set-up, (2) missing
(technical) marketing competences and (3) an inadequate product
portfolio.
A new strategy is developed: "Centre of Competence instead of
Manufacturing Unit". |
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Realization
The implementation stretches over several years and includes the
following key points:
- Introduction of a "customer focus and innovation
driven" culture and behaviour
- Build-up of marketing competences (resources,
concepts, tools)
- Completion and re-design of the product portfolio by
increasing development activities and cooperation. Products and
services are strictly focused on customer and market requirements
- Penetration into new markets (USA, Russia, China,
India ...)
- Re-organization of the production. Implementation of
„lean
production“ with much shorter delivery times. In-sourcing of key
technologies
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Results
Already in the first year the
stagnating trend can be stopped with the result of a small growth. In the
following years the top line growth is between 20-30%. The EBIT
can be increased from 0% to over 10%. |
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