Scribd Logo
Importer

Bienvenue sur Scribd !

  • Group B3 - SKF Bearings

    Transféré par

    GibreelChamcha
    39 vues1 page
    SKF, the world's largest bearing company, needs to restructure to improve profitability. It proposes splitting into three areas: Bearing Industries, Bearing Services, and Specialty Bearings. The aftermarket, which accounts for 60% of sales, is the most profitable segment. Recommendations include focusing on specialty bearings, increasing training and support, charging premium prices, growing the sales force, incentivizing distributors, and enforcing cultural and financial changes to prioritize the aftermarket.

    Description originale:

    Group B3- SKF Bearings

    Titre original

    Group B3- SKF Bearings

    Copyright

    © © All Rights Reserved

    Formats disponibles

    PDF, TXT ou lisez en ligne sur Scribd

    Avez-vous trouvé ce document utile ?

    Ce contenu est-il inapproprié ?

    Signaler ce document
    SKF, the world's largest bearing company, needs to restructure to improve profitability. It proposes splitting into three areas: Bearing Industries, Bearing Services, and Specialty Bearings. The aftermarket, which accounts for 60% of sales, is the most profitable segment. Recommendations include focusing on specialty bearings, increasing training and support, charging premium prices, growing the sales force, incentivizing distributors, and enforcing cultural and financial changes to prioritize the aftermarket.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    39 vues1 page

    Group B3 - SKF Bearings

    Transféré par

    GibreelChamcha
    SKF, the world's largest bearing company, needs to restructure to improve profitability. It proposes splitting into three areas: Bearing Industries, Bearing Services, and Specialty Bearings. The aftermarket, which accounts for 60% of sales, is the most profitable segment. Recommendations include focusing on specialty bearings, increasing training and support, charging premium prices, growing the sales force, incentivizing distributors, and enforcing cultural and financial changes to prioritize the aftermarket.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 1

    Group Assignment SKF Bearing Series: Restructuring the Before and After market

    Situation Analysis
    SKF, the worlds largest bearing company, has envisioned a need for restructuring to improve profitability and return on
    assets. The companys long term goal is to change strategic orientation from the production line to the market.
    Limitations: 1. Production already rationalized & fully automated 2. Cannot pull back on R&D expenditure
    Proposed Solution: Split the company into 3 areas:
    1. Bearing Industries

    2. Bearing Services

    3. Specialty Bearings

    Market Analysis

    By Target Segment
    14%

    27%

    27%
    32%

    By Geography

    Aftermarket
    Automotive

    5%

    Europe

    15%

    North America

    20%

    OEM Automotive

    60%

    Sweden

    Others

    Aftermarket: The true cash-cow of SKF


    The aftermarket can be divided into
    1. Industrial Aftermarket (66% SKF aftermarket sales in Skr)
    2. Vehicle Aftermarket (34% SKF aftermarket sales in Skr)
    Recommendations for Industrial Aftermarket

    Product

    Price

    Place

    Focus on production of
    speciality bearings for
    steel & paper mills,
    mines, railways and
    other industries
    Knowledge
    management: On-site
    training & support

    Increase budget for


    marketing and charge
    significant premium to
    balance these costs
    Charge nominal rates for
    support. Good handling
    and use of product will
    increase its life & premium
    is justified

    Marketing no more a cost


    center - build strong
    marketing workforce
    Increase sales force and
    provide autonomy to
    handle factory and plant
    personnel
    Incentivise distributors to
    "push" for SKF products

    At the Org level: 1. Enforce culture shift

    2.Modify financial outlook

    Promotion
    Engage sales force in
    direct promotion model
    Increase visibility among
    factory personnel,
    mechanics and engineers

    3. Build strong Marketing workforce

    Vous aimerez peut-être aussi