Preparing to Broaden the Customer Base
At the start of the 1970s, Nefab was still facing challenges presented by the new, big business from LM Ericsson. The magnitude of this new business had put Nefab to the test in many ways, including a doubling of the workforce in just a few short years. In the middle of the decade, LM Ericsson announced that their need for packaging was potentially going to decline, meaning that Nefab should not expect the same volumes going forward. LM Ericsson believed that their new and smaller transistors would mean less required demand for packaging. As a response to the announcement from LM Ericsson, Nefab decided to strengthen the focus of finding new customers among export companies in Sweden, thus making sure that any lost volumes from their major customer was balanced with new business.
At this time, Hans-Elov also initiated efforts to build up a network of agents and distributors in European markets, which would become new channels for Nefab’s packaging products. Some of the markets targeted via agents and distributors were Switzerland, England, Germany, France, Holland and Belgium.