Situation:
Every time a high-tech product update is released — especially when it involves not only software but also physical components — businesses can face significant challenges that may impact profitability, reputation, and overall performance. This case involved reconfiguring production for a new product, which affected pricing for both the new and existing products simultaneously. Often, the older product becomes cheaper but less profitable because its production costs increase.
The new product had to go through a lengthy registration and market launch process. A few years ago, the company faced the challenge of releasing a new high-tech product with physical components, where registration alone could take up to 1.5 years. Meanwhile, the older product was manufactured exclusively for the Russian market at a price twice as high as before. The objective was to maintain market share with the existing product line while preserving overall portfolio profitability.
The situation was further complicated by the fact that the company worked with only one local partner, who was reluctant to engage in mutually beneficial negotiations. This created both reputational and financial risks.

What We Did:

• First, we communicated all anticipated challenges to the partner and proposed strengthening inventory and shipment planning controls on a daily basis.
• Simultaneously, we began promoting an alternative product line that was already registered in the country but targeted a different customer segment, with the goal of offsetting potential revenue losses from declining stocks of the first product.
• All functional departments were informed about the situation and aligned priorities to support our objectives.
• As the situation worsened and production fully shifted to the new — but unregistered — product, we made the strategic decision to restructure the organizational framework and sign contracts with new partners. This allowed us to diversify commercial deals across multiple product lines and compensate for losses from the declining sales of the older product.
• Completely stopping sales was not an option, as it would have caused severe reputational damage and significant market share losses.
• Throughout the crisis, we launched several consumer-focused programs, including training seminars, educational courses, and hands-on workshops supported by partners to maintain customer engagement and trust.

Result:
When the new product was finally registered, we successfully preserved overall portfolio profitability, despite a 10% shortfall compared to initial targets, thanks to expanding our partner network. While we were unable to retain our previous total market share, we maintained a strong base of loyal customers, which later helped us secure our niche and boost profits through integrated technology solutions. Operational planning processes significantly improved: tasks previously handled manually were automated, which shortened shipping times and optimized the financial cycle.