Komatsu Case Study Analysis

Other areas that affect new entry into a market include capital requirements, economies of scale, and brand identity. All of these factors have been discussed to some degree under other

Optimization of machinery so that production setups are not required for small customizations which can be managed manually.

Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:

Threat of new entrants: Intensified price competition as new entrants sought their share of mature market had negative effect. However, high capital requirements positively affect Ford Motor Company. High capital was allocated for research and development which was and advantage against new entrants.

James is a candidate who is looking for a stable position with a good company. The job market in the Kokomo area has been very challenging in regards to stability over the past several years. He is very willing to make a longer commute if it provides him with a stable work environment. He has his Associate’s Degree in Automotive Mechanics. He also had a degree in Heating and Cooling, so that is where most of his experience has been. He worked for many years for Newlon Metals, Inc as a Forklift Operator. He ran into car trouble, and unfortunately couldn’t get to work in a reliable fashion. He then turned to temporary work through Staffing Resources, Manpower and Morales Group. During that time is when he returned to school. He secured

Some of the key facts and critical issues presented in the case, begin with the understanding the development and evolution of an industry. According to Jack Parnell (2014), the development stages of an industry rely on the influences of competition and the potential profitability opportunities. At the introductory stage, a fairly new industry is being to make awareness of their product, however depend remains low because the industry is new. New industries rely heavily on technology and as demand begins to rises, the industry enters the growth stage (Parnell, 2014). When the industry becomes stagnant and constant this typically results in the parting of those who will carry on in the industry and the loss of unsuccessful competitors. This

While mass customization is a viable option in manufacturing with digital factories and employing lean manufacturing designs, service firms have to employ a more productive environment to make mass customization profitable. Mass customization refers to using mass production technologies to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers (Daft, 2016, p. 271). The key challenge for service mass customization is to translate information about consumer preferences gained through market research into a format that can be easily used for service modularization decisions and customer-contact personnel training (Haas & Kunz, n.d., p. 603). In the service arena, mass customization becomes an ongoing configuration process with direct involvement of the customer coupled with professional advice by service personnel who understand the configuration rules and know them by heart. A clear understanding of the customer’s needs is required, as well as a requirement by service personnel to provide the customer clear and concise configuration options that strike the perfect balance between flexibility and complexity. Also, a continuous interaction between frontline contact personnel and the customer is a consequence that must be

The dealers ordered the requirements through fax or phone. This resulted in confusions between the manufacturer and the dealers. The technology that integrates all the different department’s needs should be communicated properly in any organization. This was lacking in the Four Star industries.

iii. Threat of new entrants-There has been the same companies in the market for several years now. With electronics, people tend to stick with one brand if they have a good experience with it. This makes it hard for others to enter the market.

Threat of New Entrants – The threat of new competitors entering an industry is high when initial

If the niche market is invaded by large firms then it will be very difficult for small or medium sized firms to compete & question of survival may come.

-The costs which can be borne, and the investment required to compete in the industry.

Mass production and customization used to be considered opposites and were considered to be opposite ends of a spectrum (Beaty, 1996). Mass customization allows that company to provide products meeting unique specifications while at the same time achieving a low manufacturing cost by using mass production technologies to provide one-of-a-kind products (Daft, 2013; Welborn, 2007; Pine & Gilmore, 1997). This idea has been around for over a decade, but just recently has technology caught up with the idea and allowed it to become an efficient and profitable process (Sherman, 2013; Weintraub, 2013).

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there

While the customized nature of B&B’s products isn’t conducive to the type of streamlining seen in volume manufacturing applications, they can