Overview

A leading orthopedic implant manufacturer sought to transform its pricing strategy and governance model across eight key subsidiary markets — including the U.S., Japan, Australia, the U.K., Germany, Switzerland, Italy, and France.
As the company expanded globally, it needed to move from a historically reactive, relationship-based pricing approach to a strategic, data-driven framework that aligned corporate profitability with local market realities.

Challenge

The company faced several challenges across its international network:

• Lack of alignment between corporate pricing policy and subsidiary-level decisions
• Inconsistent discounting practices and legacy pricing arrangements
• Complex product structures where multiple components combined into a single implant system
• Custom-made product pricing and consignment models that lacked profitability visibility
• Limited insight into where margin leakage and “money on the table” existed

To ensure sustainable growth, the company sought to establish a unified pricing corridor, clear rules for discounting, and a centralized “to-be” pricing process supported by stakeholder engagement across all regions.

Approach

We implemented a multi-phase Global Pricing Transformation Program grounded in data, collaboration, and local market insight.

• Conducted interviews with corporate and subsidiary leadership to identify key pain points and pricing behaviors
• Performed internal data audits on sales revenue, product mix, and discount structures
• Reviewed custom-made and consignment models to evaluate their profitability impact
• Partnered with eight General Managers and finance teams to validate hypotheses and define market-specific priorities

Solution

Our team developed a comprehensive pricing strategy methodology integrating analytical rigor with organizational alignment.

• Executed a Waterfall Analysis to quantify true cost-to-serve by country and channel
• Designed market-specific pricing corridors for core implant components and high-value custom parts
• Defined rules and guidelines for discounting by country and subsidiary type
• Created differential value propositions by segment, highlighting premium vs. commodity offerings
• Delivered a future-state (“to-be”) pricing framework combining centralized governance with local market flexibility

Results

• Identified significant margin recovery and revenue uplift opportunities across subsidiaries
• Established standardized pricing governance and decision-making tools for key stakeholders
• Improved visibility into profitability by product, customer, and region
• Delivered a formal strategic pricing roadmap and methodology to guide ongoing pricing decisions
• Enabled the company to adopt a proactive, strategic pricing mindset across its global network

Impact

The engagement equipped the organization with a scalable, transparent, and value-based pricing structure.
By aligning local market expertise with centralized oversight, the company reduced pricing inconsistencies, strengthened profitability, and built a foundation for sustainable growth across its global operations.