Precision Worldwide, Inc. Introduction When a competitor develops and introduces a superior product that is less costly to manufacture and even many times usable and durable, the key to people at Precision Worldwide must decide whether to match the competitor's product, when to do so, how to price or what sustainable competitive advantage it needs to adopt during the next strategic period, given that it holds a large inventory of its now inferior product. This issue concerns the steel and plastic rings which the company, Precision Worldwide, Inc. (PWI) is opting to produce as a matter of competing intensively with a French company, Henri Poulenc, which was at the same time posing a big threat to the viability of the steel rings PWI is …show more content…
This can bring a positive impact in favor of the PWI for its initiative at providing its customers with marked down prices of steel rings. And, (4) the production of plastic rings at a cheaper cost will enable the company to bring a message of dynamism to the market despite the prospect of competition. (Hill, 2008) 4. How long is it prudent to sell a short-lived highly profitable replacement part without jeopardizing the company’s image and market share? Answer: The introduction of the plastic rings into the market should be followed by a market survey to determine the acceptability of the market to the innovation. An analysis of the consumer behavior is important in planning the appropriate action to be taken on the period required to sell the plastic rings. The survey should be able to tell the effects of the innovation for PWI to assess how long the product can be introduced into the market without affecting the image and market share of the company. 5. What price relationship is likely to prevail between the steel rings and the plastic rings once the latter become widespread? Answer: The price relationship expected to prevail between the steel rings and the plastic rings might at a ratio of 5:1 which means that five plastic rings is equivalent to one steel ring. This relationship however, can significantly change as the cost structure is reevaluated and inputs analyzed to arrive at a more competitive cost structure enough to sustain the
This strategy will lead you to a next platform and increase the growth. It is
3. The great deal of bargaining power of supplier and customers cut down the margin of metal can manufactures.
1) Prepare the manufacturing staff’s calculations for the three alternatives (please refer to the attachments):
Hans Thorborg is the general manager of a manufacturing firm, Precision Worldwide, Inc., which produces steel rings for various domestic and international companies. Recently there has been a shift in the market to a new product, a ring made of plastic rather than steel. The new product is of a higher quality in regard to consumer concerns compared to the steel ring as well as much cheaper to produce for Precision Worldwide, Inc.
4. Emphasizing the product quality The durability of the company could last long. It gives the company to have a durability image to the customers. Customers would likely be satisfied and the company could
Introduction Curled Metal Inc. originally sold metal as a finished good but has later developed its business concept to transforming metals into high value added manufactured products. Early in 2008, the company was about to launch a new product, which could revolutionize its business, setting a new standard in the pile-driving market: CMI cushion pads. However, this product launch poses key strategic issues to the company, ranging from assessing manufacturing capacity to defining the product value proposition. In the roadmap to the launch CMI has also to consider how to approach the market, identifying key customers or/and influencers, positioning its new product, assessing distribution alternatives and
Timken was known as a leading manufacturer of highly engineered bearings and alloy steels and famous for its tapered roller bearings with over 200 types in more than 30,000 sizes. It was also the market leader in mechanical seamless steel tubing and shipped more than one million tons of premium alloy steels annually. Timken was located in Canton, Ohio. However, its operation was not limited in Ohio but in twenty-five countries and employed over 20,000 people worldwide. In the early 1990s, Timken intended to take the U.S model to Europe with some customization for the local market and focused on case-carburized tapered roller bearings. In early 1997, Timken reviewed its strategy with specific aim for
Palladium Door, Inc. wants to increase 2003 sales by 36% in 2004. There is concern whether the current distribution strategy used by Palladium would be adequate to achieve the goal. Although Palladium's growth has been steady over the past 10 years the market share was only at 2.6%. The firm's senior executives were firmly believed they justified this lofty sales goal because they had to attain a larger sales volume to preserve its buying position with suppliers. Palladium, during its growth, has exceeded the industry growth. There are three new plans on how to reach the goal. There are four different viewpoints on the marketing decision.
This report provides an analysis and evaluation of constraints in the production process for the Model C210 and the Model D400 of the Five Star Tools product line. The significant growth the company has experienced in recent years has led to a strain on the firm’s production capacity. This report seeks to determine how to loosen constraints on production and identify the most profitable product line given current production limitations. Incremental analysis is used to determine both the benefit of one additional hour of production time in the coating and sharpening process and the incremental yearly profit associated with adding a new inspection station.
Some customers could also just prefer to have the steel rings over the plastic rings despite all of the advantages of the plastic ones. He would also have the opportunity to sell the steel rings at a premium price. However, if he decided to wait until after the steel rings are being produced our group concluded that he could lose potential and current customers.
This paper will address penetrating the global marketplace and broaden the area of operations and sales for ToolsCorp Corporation. This paper will include the overall evaluation of this corporation and the long term strategic plan development. It will also include the corporation’s mission and vision statements.
Fraser Company has been the supplier of metal and plastic fabricated parts for Boeing Aircraft and has recently celebrated its 50th anniversary. In the 1960s, in order
Over the years Nucor emerged as a market leader in the American steel producing industry due to its sustainable growth strategies and incorporation of sophisticated technologies that enables the company to grow exponential and become a market leader by offering high quality steel products at lower costs. The company backed its growth strategies by massive integration in the American market. However, this growth strategy proved to be predominant in capturing the American market thus ignoring the potential competitive threats that could come from foreign steel producers. This included both steel producers integrating with American minimills and foreign producers who used America as a lucrative export market and dumped their products.
Global Electronics, Inc. (GEI), headquartered in Sarasota, Florida, designs, manufactures, and markets discrete power semiconductors and analog, digital, mixed-signal, and radiation-hardened integrated circuits for signal processing and power-control applications. The company employs about 2,300 people at its three U.S. fabrication facilities (located in Huntsville, Alabama; Evansville, Indiana; and Reading, Pennsylvania), and has 4,000 employees at its assembly and test facility in Kuala Lumpur, Malaysia. In 1999, GEI 's profitability came down with operating losses reaching $100 million on sales of approximately $650 million, causing management concern about the accuracy of the company 's standard cost system.
Destin Brass Products is a manufacturing company specialized in brass products started in Destin, Florida, 1984, running by Roland Guidry (president), Peggy Alford (controller), John Scott, (manufacturing manager) and Steve Abbott (sales and marketing manager). There are three major product lines: valves (24% of company revenue), pumps (55% of revenue) and flow controllers (21 of revenue). Recently, due to its competitors keeping reducing product price, Destin found it become difficult to match such low price with a profitability decline under the current cost system. A meeting was held among senior management aiming to find out some new strategies to keep Destin’s competitive position.