It has been a tough year for GN ReSound so far. But clear improvements within the company’s key focus areas are now taking shape. New groundbreaking products have been launched, a leaner and more customer-focused organization is in place and the operating expenses have been reduced significantly during the year.
“When you look at the numbers in our Q3 report it is obvious that we have had a hard time. But you can also see several positive developments within areas such as our product portfolio, performance in certain countries, the effects of our restructuring program and in our distribution. We all knew that 2009 in many ways would be a challenging year, but we are delivering on what we promised in the beginning of the year, and I feel very confident when looking to the future,” says the GN ReSound CEO Mike van der Wallen.
The restructuring program initiated in the beginning of the year is one cornerstone in the strategy to bring GN ReSound back in the top among hearing aid manufactures. The program focuses on creating a leaner and more customer-focused organization, reducing operating expenses and improving cash flows.
“When you look at some of our markets, we have taken complexity out and created a pure sales and marketing focus. Experienced people from large international companies have been recruited into GN ReSound in France and Germany which are two of the most important hearing aid markets in the world. A number of production sites have been consolidated into fewer sites and inventory management has also been strongly improved. We have reduced our cost base significantly and by the end of 2009 we will have cut costs by more than DKK 200 million on an annual basis compared to the quarterly average of 2008.” says Mike van der Wallen.
Most comprehensive product launch in GN ReSound history
GN ReSound has renewed the product portfolio by launching the ReSound Live and dot2 by ReSound product families. Built on the same technical platform, both product families feature the new “Surround Sound by ReSound” technol¬ogy. The global launch is the most comprehensive so far in the history of GN ReSound.”
“We have committed ourselves to restoring GN Resound’s image as an innovator in the hearing aid industry by bringing innovative products to the market all the time. With the new launches in late Q3 we are clearly taking a first step in that direction,“ says Mike van der Wallen.
New important partnerships
A main part of GN ReSound’s strategy is to enter into partnerships with the key retailers in Europe, and the company has recently successfully expanded the collaboration with two of the world's leading hearing aid retailers, Amplifon and KIND Hörgeräte.
GN ReSound has also been selected as one of the suppliers for the Veterans Affairs – an organization providing help to veterans from the US armed forces in areas such as patient care and veteran benefits. This month, Re¬Sound branded products will become available to the VA’s close to 300 clinics in the US. The contract includes not only the VA, but also the Department of Defense and other federal agen¬cies (also known as Other Government Agencies or OGAs) within the 50 states, Washington, D.C. and Puerto Rico.
“The partnerships with two of the world's leading hearing instrument retailers, Amplifon and KIND Hörgeräte are progressing really well. And with the VA contract we can now market a full product portfolio to VA’s close to 300 clinics in the US. By entering into such agreements we prove that we have taken a major leap in developing our partnership strategy and that shows without any doubt that we are on the right track. We have committed ourselves to getting back in the hearing aid manufacturers champions’ league. We still have a way to go, but we are moving forward and I feel confident, when I look into 2010,“ Mike van der Wallen concludes.
Read more about the new ReSound products.