Cameron Auto Parts

979 Words May 26th, 2011 4 Pages
CAMERON AUTO PARTS

✓ Case Analysis:

Cameron Auto Parts was founded in 1965, as consumer’s they haver three biggest car manufacturers. Cameron Auto Parts began having crisis in 2000 due two major problems: the first is about the drop in sales that were stopped at $ 48 million and in 2001 dropped to $ 18 million, and the second one is because the entry of Japanese competition to the market. Because of these losses Alex was in need for modernization, for this I borrowed $ 10 million.

In 2001 Alex began the "Operation Survival", taking the decision of reducing costs, mainly in labor force. Alex cut its workforce from 720 to 470. At the beginning of 2002 the revenue would raise to $ 45 million and there were small gains. In the midst
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The situation had changed, and now the problem was that Cameron Parts could not satisfy the demand, they don’t have the production capacity for it. The company’s market position in North America began to improve, and so they began to think about foreign markets. As the problem remained the lack of productive capacity, a bargain with McTaggart Supplies Ltd started, and Cameron Auto Parts give them the license of the production if flexible couplings due to the impact that they might have products in the U.K.

The problem with Cameron Auto Parts was that they willing to deliver their products themselves, make a direct deal with the customer and make strong the brand by their their own, but since that did not have the productivity capacity, it was necessary to license . But McTaggart Supplies Ltd did not have the technology, and feared that they might give bad image to the product and thus could not perform well the production process.

✓ Problem Solution:

To enter the European Union market Cameron Auto Parts needs a large investment, which does not have.

The lack of capacity at its production plant because its market is centralized mainly on the U.S. market, and since they now have to start exporting they need to expand the plant also acquiring new technology to meet the new requirements.

The European markets is completely
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