Solar Bird Feeder Case Analysis

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SDI, Inc. Strategic Case Analysis #1 1.What problems do you see at SDI, and which of these problems is the most important issue facing management? The most important issue facing management is the lack of a business plan and a logical strategy and objectives. It seems as though there was never a plan to make money. Strategic and financial objectives were not considered and goals were not measurable, time bound or assignable. Producing high quality squirrel resistant bird feeders is both time consuming and costly. In addition to high costs, demand is not being met and sales opportunities are being lost. Management needs to troubleshoot both production issues and sales strategies in order to reduce costs and build sales. Other problems…show more content…
Is the strategy working? Are fundamental changes needed? Current strategy is differentiation. To differentiate their product from any other product available on the market while also providing high quality. The fact is, the bird feeders have won several awards and have proven to be a popular novelty, especially by women. There is obviously a market for this item. Differentiation is a good strategy to gain and sustain a competitive advantage but fundamental changes are definitely needed in order for the business to survive and to grow. 4. What are your recommendations to the owners and managers of SDI in regard to the Solar Feeder product? Why do these recommendations make sense? Strategic planning needs to begin with a good business model, identifying financial and strategic objectives, and realizing goals. Objectives need to be measurable, time bound and assignable. Either drastically cutting costs of production by using materials that are both less expensive and easier to use or outsourcing production needs to be considered. Since using the cost-base approach didn 't ' work for pricing, they need to reduce prices to what customers are willing to pay, $150. The wholesale price will need to be $75 in order for the retailers to make the 100% profit that they desire. A consultant, such as an engineer, needs to be consulted on ways to improve the feeders, and hopefully cutting costs. Mounting kits and plant boxes should be taken off of the

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