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Mead Corporation - USA (MeadWestvaco) |
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| Segment | Paper Articles |
| Scenario |
MeadWestvaco has a turnover of $8 billion, supplies customers in over 100 countries, employs 30,000 people around the world, and is one of the largest producers of pulp and paper. Mead has always been a quality-focused company. Nevertheless, its results stopped growing in the middle of the 1990s, and, in some regions, Mead started to lose ground to the competition. One of Mead’s largest divisions was losing money in 1997. Customer Value surveys indicated that this unit was perceived, by the customers, as worse than the competition. Mead concluded that it should make changes in order to improve its competitive standing in the region. |
| Challenge |
To decide on the products and services to be improved in order to recover its competitive advantage over the competition, which was getting stronger and stronger. To evolve from a vision of commitment to product quality, to being fully focused on customer loyalty and value. To get the backing of the leadership with respect to the strategic priorities. |
| Strategy |
To migrate from the old customer satisfaction surveys used at the beginning of the 1990s to the new Customer Value approach. To gather data, analyze it, and create action programs based on the results. To select the areas to be focused on, in order to recover competitive advantage. To improve the processes for delivering the desired value to customers and to clearly communicate this message to the market. |
| Competitive Benefit |
The traditional quality and customer satisfaction, which were characteristic of Mead, enabled a swift, efficient transition to a Customer Value Management focus. The company’s results improved markedly between 1997 and 2002, making them significantly better than the competition. |
| Result |
The unit in question returned to profit and doubled its turnover during the period. Other Mead divisions have gone down the same path and achieved similar results. |