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 Dealing with Share Loss

 Situation 

  • The center section of a drive axle is the critical part of the assembly. It is also failure prone. When it fails the vehicle is inoperable until replaced or repaired. For older model axles, these replacement assemblies are available through multiple outlets: new replacements from the OEM manufacturer though their distribution channels or re-manufactured assemblies sold though the re-manufacturers distribution channels (often overlapping with the OEM’s outlets). Over the past several years the quality of a re-manufactured unit and its’ commercial fleet acceptance has caused the company to lose share of the replacement market.

 Action 

  • After conducting an extensive voice of customer project with Sales, Customers, fleets and end users, a more competitive service portfolio was established that emphasized the product differences to answer unmet needs. Additional warranty options were created. Delivery and purchase programs were created that closed the economic and service gap between remain and premium offering

 Result 

  • Share, revenue and EBIT recapture!
     

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