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Garmco Case

Satisfactory Essays

7.0 Strategic Implementation

6.0 Strategic Recommendations

In order for Garmco to leverage and improve its competitive advantage, there are many recommendations for them to consider.

Firstly, in order to overcome the issue of highly depending on Alba as a supplier for raw materials, it is recommended that Garmco negotiate a contract with another supplier of raw materials that could also be cheaper in cost. This recommendation is for them to secure themselves in times of crisis, where because Alba has strength over them, it has the power to raise prices, which in return will affect them. Thus, Garmco should not limit itself to one supplier seeing that the raw materials are important for them to operate.

Secondly, Concerning high electricity consumption, which will affect Garmco when electricity prices increase, it is recommended for Garmco to invest in efficient energy technologies that will help support their commitment of reducing their energy consumption,seeing that the industry is highly energy consuming and especially electricity. Similarly, it is recommended for them to engage in related diversification by operating in a country where electricity costs are low and specifically in areas with increased hydroelectric resources and as an example, North of New …show more content…

Seeing that Garmco is currently only a roller of Aluminum, and according to Lucas (2016), they see the future of their business as becoming recyclers of aluminum; it is recommended that Garmco build a recycling plant in countries where aluminum consumption is high, and in countries where they are currently operating at such as Australia, Thailand, Singapore and the United States, which in other words is diversification. This could allow them gain a competitive advantage and improve their core

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