SKF Bearings Series: Market Orientation Through Services (A): Restructuring the Before and After Market Harvard Case Solution & Analysis

In the spring of 1987, Mauritz Sahlin, CEO of SKF, the largest bearing company in the world, decided to transform the company to increase profitability and return on assets. Production has been streamlined and fully automated, leaving little room for savings. Can R & D costs can be reduced, given the company's reputation for technological advances 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 will now be divided in to the market and the secondary market. The plan calls for a comprehensive restructuring of the company, with far-reaching consequences throughout the organization, but there was no other choice. Designed for a springboard to a new culture market SKF, SKF Bearing Services was created, and Goran Malm was asked to become its CEO. ECCH 1995 and 1997 award winner. "Hide
by Sandra Vandermerwe, Marika Taishoff Source: IMD 11 pages. Publication Date: 01 January 1990. Prod. #: IMD063-PDF-ENG

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