Lars Kolind抯 target was to create and set a long-term

The 1970抯 were the golden age for the company as it was grossing a huge turnover and developing rapidly.

The situation turned around in the 1980抯 by the introduction of the In-The-Ear aids that made the Behind-The-Ear aids that Oticon was producing, almost obsolete. In the Wake of the losses that the company faced due to this lack of foresight, a new management was put in place. At that time, the company spread over thirteen countries and had a customer base in more than a hundred countries worldwide. The company had a clearly defined hierarchy with the headquarters located far from any production site and every department housed in separate buildings or on different floors.

Since the beginning, Oticon positioned itself in the high price market. However, while the hearing aids market was important, it was expected to decline, and the biggest market for the product, the United States was expected to see a drop in demand as the market reached its mature cycle. Oticon was not the world leader in the market, and there were more than a hundred companies claiming a share of it. It was to help the company out of this situation that Lars Kolind was roped in by the management.
Lars Kolind抯 first decision was to cut expenses. He drastically restructured the company in order to achieve this target. Oticon Holding was made the managing centre of the company and the main functions were realigned to obtain a clearer organization structure with a view to improving the understanding of the market in order to improve sales. He also cut jobs and overhead expenses, and discontinued unprofitable product lines. The strategy succeeded and the company registered profits. There was increased focus on partnerships with retailers and potential sellers, along with an emphasis on R&D rather than high quality.

Lars Kolind抯 target was to create and set a long-term strategy for the company thus enabling it to stay competitive even with changing market scenarios.