Peter shouldn’t impose a single model. Instead, he should impose a strategic framework that manages the dual models. Specifically, the immediate priority is to define clear customer segments and a unified sales process to eliminate the internal competition that is confusing buyers and eroding margins. The free expert service (the PhD teams) is the unit’s unique competitive advantage. Peter should recognize this service not as a potential revenue source that salespeople dislike selling, but as an investment that justifies the price point of both the machines and the consumables.
The new entity can be a portfolio of models that need to be deployed based on needs of the particular customer. They should maintain the high-margin “machine” model for the research market and the “consumables” model for the diagnostic market. This approach clearly communicates the value proposition—expert support included—to each.
