Comparison And Bharat Forge

In the case “Metalcraft Supplier Scorecard”, the author uses an example of a decision-making problem regarding to which supplier should Metalcraft choose to lead to the topic of the Metalcraft supplier scorecard. Metalcraft, as a component designer and manufacturer, supplies a few largest automobile manufacturers with vehicle parts all over the world. As one of the tier 1 suppliers, Metalcraft offers and ships finished parts and components using in the automobile production process to automakers.

Caterpillar’s main industry of machinery has many barriers to entry which makes it difficult for new organisations to enter the market. It is a mature and highly competitive industry with few dominant competitors who have cemented their position over the decades. Furthermore, these corporations have sustained a competitive advantage over any new entrant that tries to enter into the industry.

With a wide variety of vehicles and manufacturers due to low switching costs, the bargaining power of customers is very high in the automobile industry. Also foreign brands are selling vehicles in the Indian markets, adding to the bargaining power of customers in this industry. Thus the value created by the firm lies in adding differentiating features by innovating and increasing the customer’s willingness to pay while reducing the supplier’s opportunity cost.

In addition, the internationalisation is the strategy to occupy the foreign market step by step. Also, the porter’s competitive advantages theory is to analysis the strategies of global business. They could divide to three strategies: over cost leading, diversity, and market focus strategy (Passemard& Calantone, 2000). The cost leading strategy focus on establish efficient scale production facility and minimize the research and advertising cost. The diversity strategy focus on introduce some unique product in whole industry. But, this strategy will with a high cost price. The focus strategy is attack of a particular customer group or specialist regional market, its purpose to design the service for a particular target. Consequently, the companies need to consider the internal and external factor condition, such as: factor condition, demand condition, related and supporting industries condition, and firm strategy and rivalry. They are called diamond system. This dynamic system gives the company a standard to measure theirs advantage and disadvantage before they enter foreign market. Moreover, the specific advantage in Internationalisation of Production is give companies a new choose for exhausted market (Strange,S. 1992). In an international environment, the companies will face more uncertain and unequal condition than home market, therefore the companies need keep the attention of more factors:

The front-end loader project would require that the company would produce small front-end loaders and sell its product to construction companies, farmers and ranchers through retail establishments and to the military and municipal government directly. This is a completely new business venture for the Pleasure Crafts INC. It will draw upon its strengths in small-engine manufacturing. However, to make the final

The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. All of the ACF’s production was sold to the Big-Three domestic automobile manufactures. Its main competitors were local suppliers and other Bridgeton plants. This company did very well but recently it became less effective when foreign competition and scarce, expensive gasoline caused domestic loss of market share. For boost its selling, it made four criteria, quality, customer service, technical capability, and competitive cost position to evaluate three classifications of products.

But Firstly, we will start this part by talking about the importance of a deep analysis of the industry’s structure. A deep knowledge of the industry the company is in, is extremely important. The industry structure is unique and varies from industry to industry of course. It will determine the level of competitiveness and attraction of the industry. With the Five Forces model (Porter) and PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analysis, the organization will get a better understanding of the market will allow you to know the requirements for the possible creation of sustainable competitive advantages and take the right strategic decisions. According to Porter, to create an efficient competitive strategy, it is important to understand the rules of competition that determine market attractiveness.

To be successful in the steel industry a company must be very innovative and able to differentiate their products from the next guy. Steel is steel and it is not important as to how it is packaged or how it looks but whether it serves the customer’s needs. In order to be successful production must be efficient, delivery must be on time, and innovation is the key.

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

The Swiss – based elevator manufacturing company, Schindler, is considering an business expansion plan. After thorough evaluations of growth potential and competition environment, India became the centre of attention for the executives to implement the company’s business plan. Considering the enormous growth potential of the Indian standardized elevator market, Schindler was imperatively in need of finding a source of distribution, after the company renounced its cooperation with one of India’s most successful elevator supplier, Bharat Bijlee Ltd (BBL). Possible market entry strategies included joint venture, direct export and local manufacturing subsidiaries. After consultation and careful consideration, the company concluded that opening

The article “Making the Most of Foreign Factories”, written by Kasra Ferdows discusses how companies can and should obtain the full potential of their factories abroad. She begins by stating that there are two approaches to manufacturing and a factory’s importance to the company is based on the approach the manager of the factory takes. She also exclaims how she thinks the gap between companies that treat their foreign factories as a source of competitive advantage and those that do not is widening.

Our firm has set out to Internationalise its operations by opening to different facilities One in China Assembling and Maintaining Aircraft Engines and the other in Europe fabricating turbine blades for Aircraft

The expansion of the company will have different inferences; the company may get high level of profits or get losses. Profits can use as a good measure of the company’s expansion in a certain region. The success of the company is normally measured by the level of profits that it generates by involving itself in a certain venture. In this case this company is completing whether to enter the India market or not. It is recommendable for the company to enter India market since there is high demand for its products in the country (Hafford-Letchfield, 2010). Though its products received mixed reactions from China and Japan, the company can take encouragement from the fact that the Indian market did not compose of many electrical companies like in the case of china and Japan. The degree of competition in India is low while the demand is high. Applying the law of demand and supply, entry to the Indian market will signify an increase in the profits of the company (Kuada, 2008). The demand for its products would be in the rise in this country.

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

Automotive Builders, Inc. (ABI) is a company that consistently changed its production lines and strategic goals relative to the needs of the times, starting out producing diesel engine parts for tractors in the 1940’s, switching over to the production of parts for military vehicles during World War II, and then, after the war, settling into its current placement in both the automobile and tractor industry. Due to the downturn in the economy and stiff and superior competition in both quality and price rising up from the Japanese who had recently entered into the industry, ABI is trying to find productive and innovative ways to improve sales and guarantee placement as the number one company in its