Case ID: IMD079
Solution ID: 36243

Revolution at Oticon A S A

Case Solution

From the mid-1980's, Oticon A/S, a Danish manufacturer of high-quality hearing aids, begins to experience significant losses and falls from its No. 1 market position to third position. A newly named CEO, Lars Kolind, initiates a significant cost reduction and product line rationalization program, which leads to a dramatic turnaround, restoring the company once again to profitability. Kolind, however, does not think that these changes have led to a sustainable competitive advantage and he further introduces a vision for Oticon A/S headquarters that would entail a fundamental restructuring and transformation of the organization. Management and employees revolt and refuse a planned move of headquarters. Should Kolind proceed with the proposed radial change, or has this recent turnaround been sufficient to restore Oticon to its No. 1 position? A 1994 and 1995 ECCH award winner. May be used with

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