Defining the problem
This world leader’s success in consumer electronics masked the fact that its digital home appliance group was losing money. Rooted in the past and averse to change, the client’s marketing and sales efforts were also fragmented and ineffective. To top it off, management wasn’t aligned on what it would take to meet the company's goals.
The client was rooted in the past and averse to change. Its business unit still did things as it always had, and had never taken a hard look at its costs. What would it take to be more competitive? Where could costs be trimmed? How could its operations be simplified?
Second, the client’s marketing and sales efforts were fragmented and ineffective. It lacked deep insight into retailers and consumers. As a result, it wasn’t responding to changes in what its retailers wanted or needed, and it hadn’t taken advantage of its worldwide reach with a global marketing strategy.
Finally, management wasn’t aligned on what it would take to meet the company’s growth goals. While the business unit was doing very well in its competitive home market, it was underperforming everywhere else. It was selling more than 100 products in over 15 markets around the world, but wasn’t strong in any one market or any single product line. Which markets should it focus on? Should it eliminate unprofitable products? What were its best opportunities to increase profitability and promote long-term growth?