Understanding How a Product Line Audit Reversed the Tides of an Eroding Business can be beneficial when it comes to analyzing and strategizing a business’s trajectory. At True North PMP Consulting, we thrive on challenges, and one of our most rewarding experiences was leading the transformation of the struggling GE Silicones Automotive Group. When General Electric faced a daunting $15 million decline in sales within the North American automotive market, compounded by fierce competition from industry giants like Dow Chemicals and Wacker Silicone, the stakes were high. Employee morale plummeted as the group grappled with eroding sales and a lack of competitive edge, prompting GE to seek a turnaround strategy.

Tasked with leading the charge, we knew a comprehensive assessment was imperative to understand the root causes of the group’s downturn. Thus, we initiated a Product Line Audit, a crucial tool to evaluate the competitive landscape and identify areas of strength and weakness within GE’s product line.

The audit illuminated a stark reality: GE’s one-part silicone products couldn’t measure up to the superior offerings of Dow Chemical and Wacker Silicone. Recognizing the futility of trying to compete head-on in this arena, we pivoted our strategy. Leveraging GE’s unique rubber coating technology, absent from competitors’ portfolios, we devised a game-changing plan.

By redirecting resources towards the development and promotion of this innovative technology, GE Silicones saw a remarkable turnaround. Within just 14 months of commercialization, the rubber coating technology yielded a $5 million increase in sales, boasting an impressive 60% contribution margin compared to the meager 10% of one-part silicone products. Within three years, sales surpassed $20 million, solidifying GE’s newfound dominance in the market.

Moreover, the barrier to entry for competitors like Dow and Wacker was insurmountable, as they lacked the necessary chemistry to rival GE’s offering. With a clear path forward, we collaborated closely with GE’s Headquarters and Product Technology Teams to drive the validation and commercialization process. From manufacturing scale-up to in-field trials and establishing pricing strategies, our concerted efforts paved the way for success.

Through targeted marketing campaigns aimed at automotive and truck OEMs, we strategically positioned GE Silicones as the go-to solution for rubber sealing issues, cementing its competitive advantage in the market.

In hindsight, the lesson was clear in, “How a Product Line Audit Reversed the Tides of an Eroding Business” innovation coupled with strategic foresight can turn the tide even in the face of formidable competition. At True North PMP Consulting, we’re proud to have played a pivotal role in reshaping the trajectory of GE Silicones Automotive Group, demonstrating the transformative power of strategic consulting. We would love to learn more about your business. Reach out to us here and also on our Facebook page!