GN Netcom is a leading global manufacturer of headsets. It was originally part of Great Northern Telegraph but became its own company called GN Netcom in 2002. Throughout the 2000s, GN Netcom expanded significantly through acquisitions and shifting most of its production to China to reduce costs. By 2000, GN Netcom and Plantronics dominated the headset market, together controlling 80-90% globally. In the late 2000s, GN Netcom faced challenges in further expanding Chinese operations and properly integrating acquired companies while addressing high production costs.
GN Netcom is a leading global manufacturer of headsets. It was originally part of Great Northern Telegraph but became its own company called GN Netcom in 2002. Throughout the 2000s, GN Netcom expanded significantly through acquisitions and shifting most of its production to China to reduce costs. By 2000, GN Netcom and Plantronics dominated the headset market, together controlling 80-90% globally. In the late 2000s, GN Netcom faced challenges in further expanding Chinese operations and properly integrating acquired companies while addressing high production costs.
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GN Netcom is a leading global manufacturer of headsets. It was originally part of Great Northern Telegraph but became its own company called GN Netcom in 2002. Throughout the 2000s, GN Netcom expanded significantly through acquisitions and shifting most of its production to China to reduce costs. By 2000, GN Netcom and Plantronics dominated the headset market, together controlling 80-90% globally. In the late 2000s, GN Netcom faced challenges in further expanding Chinese operations and properly integrating acquired companies while addressing high production costs.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
specialist in the development, production and marketing of headsets for professional and consumer markets. History
Great Northern Telegraph’s primary
business was the construction and operation of international telegraph networks.
GN Netcom dealt with the following
products:
◦ Headsets with microphones
◦ Amplifiers used in offices, call centers ◦ Headsets produced for consumers – mobile phones in cars Significant transitions
GN Danavox, the sister company of GN Great
Nordic acquired Resound Corporation and Beltone electronics in 1999.
In 2000, 50 Danish employees were laid off due
to the shift in the production location.
Italso shifted its productions from Austria to
China.
In 2000, the increase in employment was marked
from 100 to 300 and relocation of 70% production. Significant transitions
The company was formerly known as GN
NetTest issued an IPO in 2001
It founded itself as NetTest in 2002 and
is headquartered in Brondby, Denmark with additional offices in the United States, China, France, Germany, Italy, Singapore, Spain, and the United Kingdom. Significant transitions
The acquisition of UNEX in New
Hampshire and ACS in San Jose, California.
The separate brands were maintained
while the operations were integrated.
The product was customized for the
European and North American markets. Market Position in 2000
The global market leader was Platronics
followed by GN Netcom.
Afterthe acquisition of Hello Direct, GN
Netcom was estimated to hold around 25% of the global market.
In 2001, Platronics and GN Netcom
together controlled a total of 80 – 90% of the worldwide market for headsets. This resulted in a Duopolistic market. Market Position in 2000
In an effort to establish a strong position
in Asia, GN Netcom kept it headquarters in Hong Kong to coordinate Pacific activities.
Sales in China had been growing at the
rate of 45% GN Netcom Global Operations
GN Netcom wanted to diversify in the Chinese market
by establishing contact with many sub contractors in Beijing and GN Resound.
The main objective was to reduce the production
costs.
The American market was not compatible to the
European Markets. GN Netcom maintained both UNEX and ACS product in addition to the existing product lines in North America.
GN Netcom’s main production in North America was
based in Nashua, New Hampshire. They had outsourced to subcontractors in Guaungdong and four original equipment manufacturers. The Competitor
GN Netcom faced competition from
Plantronics.
Plantronics, Inc. introduced the first
lightweight communications headset. New Challenges
GN needed to establish its own independent sales
network in China
GN Resound relocated more production to Xiamen
and China and closed facilities in Denmark and Austria. This created a need to further expand capacity in China.
NeilsChristianen succeeded Christian Tillisch as
CEO of GN Netcom. He had a total work experience of 8 years before he became the CEO. New Challenges
Christianenbrought a new management team to
GN which advocated strategy of continuous improvement across the organization.
The various JV’s and acquisitions made by the
firm had to be properly integrated.
GN Netcom had to address its cost of its
operations with production in relative high wage countries.
The geographical location of the company’s
distribution centers were not well located. Questions