SKF Bearings Series: Market Orientation Through Services (A): Restructuring the Before and After Market
In the spring of 1987, Mauritz Sahlin, CEO of SKF, the world's largest bearing company, decided to transform the company to improve profitability and return on assets. Production had already been rationalized and was fully automated, leaving little room for savings. Neither could R&D expenditures be cut, given the company's reputation for technological prowess 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 would now be segmented into the before market and aftermarket. The plan required a complex reorganization of the company with far-reaching consequences throughout the organization, but there was no other option. Intended to be the springboard to a new SKF market culture, SKF Bearing Services was created, and Goran Malm was asked to be its CEO. A 1995 and 1997 ECCH award winner.