Xeon International’s “Organic Growth” division has developed double digit growth of EBIT performance at client’s side within 14 months of intervention
The aim was to enhance the EBIT (Earnings Before Interest and Taxes) through a program of 2 major improvements: “Portfolio optimization” and “Adapted segmentation strategy in accordance with market requirements”.
While growing companies always estimate that growth is simply mathematically obtained by adding more products, Xeon International challenged that assumption and increased client’s sales with less products.
Many CEOs forget that the erosion of profits is very much caused by a poorly managed product portfolio. “It is again and again amazing to see how some products are literally eating the margins of other profitable products while no one is really paying attention to it. Managing portfolios of 4000 SKUs (Stock Keeping Units) and more is not a part time job!” stated Yves Duponselle, CEO of Xeon International. He added “It is always amazing to see how products evolve in a company, sometimes even exactly on the opposite of market requirements”. This mistake is generally caused by organizational inefficiencies while many companies also identify market research as a brake to enhance “time to market”. It is also generally wrongly assumed that the cost of launching a new product is much cheaper than the process of asking the future client whether the product has a compelling reason to buy.
Xeon International is a value creation company that runs International Sales & Marketing for its clients. The company offers a comprehensive range of “Organic Growth” services developed to increase sales on the short and long term.
Xeon International also acts as an outsourced partner for leading companies to open and activate distribution channels across major markets.