SKF Essay 1
“SKF Bearing Series: Market Orientation Through Services (A): Restructuring the Before and After Market”
Ensayo para la asignatura:
“Strategic Decisions in Marketing”
Facultad de Administración
Programa de Negocios Internacionales y
Administración de Empresas
Docente: Luis Felipe Piñeros
presentado por:
María Camila Henao, Alex Hernández y Bernadetta Navarro
Semestre II, 2011
A new strategic focus.
SKF case would help us understand the importance of a market orientation for an organization. This means understand customer needs and satisfy them successfully and identifying opportunities in markets failure for meeting this needs.
SKF was the world’s largest bearing company that since its foundation in 1907 had had the biggest market share all over the world. The key of success through many years for the company was its strategy of scale economies, low costs and high quality. This strategy worked very well for the company until 1986 when sales started to slack and margins to get narrower all because of the increase of competitors which didn’t have enough space to compete for costs or quality.
This issue led the company to make a deep research into bearings market and found how inside the market they could find different needs for different customers that could be group into different segments. This where Automotive OEM, Machine OEM and Aftermarket which was also subdivided in two: The Industrial Aftermarket and The Vehicle Aftermarket.
This segments Helped the company to analyze which segment was more profitable, which one had higher demand, which one was more susceptible to price, which was willed to pay more and some other characteristics of each segment.
This was important to know what need where unmet in each segment and what opportunities they could identify in each one, so they can give a better product market to each of these segments to improve profitability for the company.
The challenge was now to reorganize the company for a
Ensayo para la asignatura:
“Strategic Decisions in Marketing”
Facultad de Administración
Programa de Negocios Internacionales y
Administración de Empresas
Docente: Luis Felipe Piñeros
presentado por:
María Camila Henao, Alex Hernández y Bernadetta Navarro
Semestre II, 2011
A new strategic focus.
SKF case would help us understand the importance of a market orientation for an organization. This means understand customer needs and satisfy them successfully and identifying opportunities in markets failure for meeting this needs.
SKF was the world’s largest bearing company that since its foundation in 1907 had had the biggest market share all over the world. The key of success through many years for the company was its strategy of scale economies, low costs and high quality. This strategy worked very well for the company until 1986 when sales started to slack and margins to get narrower all because of the increase of competitors which didn’t have enough space to compete for costs or quality.
This issue led the company to make a deep research into bearings market and found how inside the market they could find different needs for different customers that could be group into different segments. This where Automotive OEM, Machine OEM and Aftermarket which was also subdivided in two: The Industrial Aftermarket and The Vehicle Aftermarket.
This segments Helped the company to analyze which segment was more profitable, which one had higher demand, which one was more susceptible to price, which was willed to pay more and some other characteristics of each segment.
This was important to know what need where unmet in each segment and what opportunities they could identify in each one, so they can give a better product market to each of these segments to improve profitability for the company.
The challenge was now to reorganize the company for a