Strategy - Financial Recovery

Business Strategy, Strategy Development


Through custom market research, PMG assessed the current hermetic compressor market in juxtaposition with the company’s net position on each product and service attribute. The PMG study proposed two alternative strategies to leverage the company’s perceived strengths in the marketplace: to compete on reliability or efficiency. As a direct result of PMG’s recommendations, the company aggressively pursued the position of a strong second supplier and, in turn, has strengthened its market positioning in the industry.the company’s


The only compressor manufacturer in the world that can still claim its entire product line is made in the U.S.A. was facing growing challenges from a variety of angles. The company was experiencing mounting financial pressures, and its future was looking bleak.

The designer and manufacturer of hermetic compressors prepared to embark on an aggressive recovery plan based, in part, on the following key objectives:

  • Proactively and realistically assess the perceptions of its overall brand and valued customers

  • Strengthen its product and market position against a formidable industry competitor

  • Establish a better understanding of market trends

  • Identify unmet customer needs.


PMG’s core strategy for the market research focused on exploring how the compressor manufacturer would position itself as the go-to “Like for Like” replacement source option for products manufactured by the company’s top competitor. “Like for Like” means that the products feature the same tubing and mounting configuration as the competitor’s. PMG’s market research revealed that the compressor manufacturer already had a solid reputation as a leading secondary compressor supplier. Additional study findings confirmed that the compressor manufacturer had strong brand awareness, offered a competitive price advantage resulting in a positive value position, was seen as the leader in reciprocating technology and product development, and was a highly reliable source as a primary compressor supplier. However, the PMG study also determined that the compressor manufacturer was not in a position to tackle its leading competitor head-on.


Upon the conclusion of the market research project, PMG posed two alternative strategies: compete on reliability or efficiency. The reliability strategy involved a greater focus on differentiation, total application costs (TAC), and targeting sales efforts based on the company’s strong engineering capabilities. The efficiency strategy focused on gaining access to rotary technology for larger compressors, helping customers stay ahead of refrigerant and seasonal energy efficiency ratio (SEER) legislative developments, as well as establishing product development partnerships between customers and suppliers. Due to PMG’s recommendations, the company succeeded in establishing a strong niche position as a secondary supplier and is now a strong company with a solid workforce of 1,000 employees.

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