Lifeline Systems provides equipment to respond to emergencies for elderly people who live in the house. The company uses local hospitals to market, sell and install these devices in homes, while in the hospital and monitor calls to help respond to emergency calls from older users. After serious performance problems because of ill-advised diversification strategy, the new CEO, Ron Feinstein, turns the company around by focusing on hardware and services. Lifeline is aimed at supporting the channel and takes the monitoring service, which is the growth of the business. Rewritten version of the previous case. "Hide
by H. Kent Bowen, Marilyn E. Matis Source: Harvard Business School 28 pages. Publication Date: June 21, 2000. Prod. #: 600099-PDF-ENG