It is now been three months since Mogens Elsberg first sat down at the desk reserved for GN Netcom’s CEO. Since then, the desk has been unoccupied most of the time, because Mogens Elsberg has criss-crossed the world to meet as many GN Netcom employees and customers as possible. The many impressions he received have helped give him a good understanding of the kind of business GN Netcom is and how to win market share and bring the bottom line back into the black.
“I was very happy to learn that GN Netcom is a business full of highly motivated and skilled employees. We have an incredibly strong product portfolio, and we’re frontrunners in most of our markets. Also, the message from several of the key customers I’ve met is that GN Netcom products such as the new Jabra PRO and Jabra GO CC&O headsets are unique and several steps ahead of the competition’s products. The same goes for the Jabra Halo and the new Jabra STONE from our Mobile Headsets division. In other words, the basic requirements for growth are in place,” says Mogens Elsberg.
Trimmed and ready for battle
The last 18 months has been a time of restructuring for GN Netcom, but Mogens Elsberg stresses that the restructuring process is nearly finished, and he chooses his words carefully when explaining what will be on his and GN Netcom’s agenda in the coming months and years.
“We need to expand our market share, and we need to go out there and win market share from our main competitor, Plantronics in the US. We’re almost done with our FAST restructuring program, which has been managed extremely skillfully and professionally. Thanks to FAST, we will be able to lower our costs by as much as DKK 500 million per year from our 2007 base line. So, on the costs side, we are also a well-trimmed organization, and I’m very confident that we stand well-prepared to win market share. All in all, I’m convinced that GN Netcom will be reporting a profit as early as next year.”
More Dedicated Sales and Marketing
One of the ways to achieve this will be a dedicated and effective sales and marketing campaign combined with GN Netcom’s in-depth knowledge of the market and the competition. The battle for customers is a must-win for GN Netcom. A number of initiatives, including exclusives with key customers, will be used to strengthen GN Netcom’s sales and to enhance customer awareness of the Jabra brand.
“The campaign roll-outs that GN Netcom will be conducting in connection with new product launches are extremely important in creating awareness about a specific product and about the Jabra brand in general. In some cases, the best thing to do is to sign fixed-term exclusive agreements with key customers when launching new products or product series. This is one of the things we’ve done in the US, selling our Jabra STONE mobile headset exclusively through telecoms giant AT&T. During the contract period, we are fully committed to giving our customers dedicated marketing support. In return, the customer commits to a highly focused effort to sell the product in question,” says Mogens Elsberg.
During the last few quarters, GN Netcom has managed to improve its bottom line and generate a positive cash flow in spite of operating in a market that has come under severe pressure due to the financial crisis. The many new Jabra products in both the CC&O and the Mobile businesses have created high expectations for the coming months, and Mogens Elsberg is confident that 2010 will be a good year for GN Netcom.
“I believe that our current product portfolio will be the road to success for us, but it will require that every one of us gives our full commitment and support to our colleagues in sales and that we do all we can to help them and GN Netcom win market share. If we get the dedicated support from all members of our staff, we will definitely achieve a positive performance for GN Netcom next year,” he concludes.