In this paper, we will examine the entire value chain that Kaman Distribution, and each of its three platforms, can offer its customers. Kaman Distribution is the larger of two sectors within Kaman Corporation, the smaller being the Aerospace Division. Kaman Corporation is a publicly traded company on the NYSE with the symbol KAMN. Kaman Distribution began as Kaman Industrial Technologies (KIT) in 1945. Kaman Distribution had reported revenue of $1.11 billion for 2016. Kaman has 240 locations across the United States and Puerto Rico, these include local branches, distribution centers, specialty fabrication shops and corporate offices. Compared in size to other distributors of Power Transmission products and services, Kaman is distant …show more content…
Buying other companies is the perfect way to grow market share, by adding new product lines to the catalog, getting exposure to new markets in regions where there was previously no presence and also by adding new business services that enhance the “in house” capabilities of the company. It also adds a new level of expertise from the people who perform the services to the executives that run the company. To fulfill the service and capabilities gap Kaman has been working on a “three-platform strategy” that provides products and services for Power Transmission (PT), Fluid Power (FP) and Automation, Control and Energy (ACE). To make this a reality Kaman has been acquiring companies over the last ten years specifically with the goal of filling in these gaps in order to offer more products and services.
The way to a Buyers heart is Cost Savings. It isn’t always possible to lower the price, so cost savings must be found by other means. Kaman has ventured into operating several services shops (in conjunction with supplier partners) to keep customers in house and offer them a substantial savings over buying new. The ability to offer cost saving solutions is a trademark of Kaman and one of the ways that Kaman has historically gained a loyal customer base and has been differentiating itself from its competitors from the beginning. The main vehicle for documenting these savings offers is the
These customers value both low cost and excellent customer service. Providing both generates both branch loyalty and advertisement through word of mouth.
* IKEA’s low cost structure has been the very core of its success. It’s low-cost and high-quality strategy fits with the current state of the economy. Offering convenience factors within IKEA’s stores would fit well with IKEA’s low cost structure. It maintains its low-cost business model by creating a different furniture shopping experience. IKEA supplies customers with all possible materials needed to complete their shopping when they enter the store (that are, measuring
Selection of distribution locations that can give a suitable place for customers to purchase company products is a very important way to enhance the distribution advantage. Reliable delivery timing is another point that Siemens can build on to create the needed differentiation through distribution. As Siemens depend on partners in many locations all over the world to perform the task of distributing its products, providing the needed training and support for those partners can help to enhance the distribution differentiation over competitors.
Husky Energy Inc. is a recognizable company to many Canadians. Most people just know it as “The Husky” and see it as just merely an oil company operated through North America. Although Husky Energy Inc. is centred in Alberta and Saskatchewan, it is a worldwide enterprise. “China, Greenland, and Libya” all have Husky Energy within their countries (Husky Energy Inc.). Now privately owned, the business value is at “28 billion as of October 2009” (Warnock, 1) and continues to growing exponentially. They are continuing expansion, becoming much more than a gas and oil supplier. They understand the changes are essential in being a successful corporation.
Ohmeda’s current distribution system and sales organization is not well suited to implement Rountree’s new business strategy. The new corporate strategy calls for growth in high technology product lines and the current dealership channel is more suited to goods that require less education and information. In summary, the market trends combined with our changing corporate strategy will require Ohmeda to change the distribution channel and structure of the sales force. In the short run, this will require a transition period and an investment to reorganize Ohmeda’s sales force for long term growth. In the long run, we believe this consolidating market will be heavily specialist orientated. Due to these facts we recommend a dedicated
CVS needs to think through numerous elements impacting its’ business. Pricing strategies, rivals and their current products, consumer demands and suppliers are examples of these elements. For pricing strategies, CVS should consider closeouts, discounts, product bundle pricing, penetration pricing, geographical pricing, and membership or trade pricing. For non-pricing strategies, options comprise: enhanced service quality, longer opening hours, advertising, and extended warranties (Kimmons, n.d.). By pricing similar products in a different way they must focus on regional demographics because geographic pricing enables the maximization of profit. For promoting unique or new products at provisional price drops, penetration pricing is the most effective. Finally, bundle pricing and closeouts can be engaged when several
Husky Energy Inc. is a recognizable company to many Canadians. Most people just know it as “The Husky” and see it as just merely an oil company that is operated through North America. Although Husky Energy Inc. is based in Alberta and Saskatchewan, it is a worldwide enterprise. “China, Greenland, and Libya” all have Husky Energy within their countries (Husky Energy Inc.). The now privately owned business is valued at “28 billion as of October 2009” (Warnock, 1) and is growing exponentially. They are continuing expansion, becoming much more than a gas and oil supplier. They understand the changes are essential in being a successful corporation.
Because Harrington Collection thinks that sales people are the most important factor in the consumer decision-making process, they spend significant resources training their personnel and offering them attractive commissions. Their expenses are understandable, and didn’t change for the fiscal year of 2007. What did change were the Manufacturing Group’s expenses. The Manufacturing Group’s SG&A increased 4.63% in 2007, meaning that the cost of maintaining the current manufacturing set up is increasing.
Brazilian multinational corporation, Metalfrio Solutions S.A., is one of the world’s largest manufacturers of plug-in commercial refrigeration equipment. They seek differentiation through innovation and customer relationships, through their brands of Metalfrio, Derby, Caravell and Klimasan, to meet the different needs of their customers (“Metalfrio”). In addition, Metalfrio goes beyond just their point of sales, as they include services along with their products, adding value and uniqueness to the company. However, it has taken many years to get to where they are now.
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
In order to achieve its goals clear guidelines were set that specified the degree and timing of acquisitions – focusing only on companies that exhibited stable earnings or earnings countercyclical to the gas transmission industry. Cooper focused on acquisition targets that possessed strong assets with high quality manufacturing and market-leading positions. Cooper continued to refine this acquisition model seeking companies with stable earnings using well-known technologies that served a broad customer base. Furthermore, Cooper focused on firms with high quality products and recognized brand names.
Mydin offers varieties of similar range products as their competitors where they are still able to undercut prices by reasonable percentages. Mydin’s pricing strategy is low price strategy where this strategy emphasizes on low price products as well as maintaining the quality of their products. It also focuses on reducing the cost from their operation to produce lower price products yet good quality. Besides that, Mydin used low price strategy to attract lower and medium income group in across Malaysia. Therefore, lower and medium income families are willing to purchase at lower price and high quality products at Mydin. Nevertheless, Mydin able to sustain its customers for long period of time and it will increase customer loyalty through their low price strategy. In addition, this low price strategy may attract small wholesalers and petty traders in getting cheaper supplies from Mydin. “It has also contributed to the business expansion and is reflected by an increase in number of wholesalers and petty traders who have registered as their frequent buyers (Armum, N.D)”. Furthermore, Mydin also emphasize in bulk buying and bulk selling to enjoy lower prices. Thus, Mydin selling in bulk enable to cut cost as well as sustains lower price for its wholesaler, bulk purchasers and end user. Therefore, Mydin was encouraging people to buy in bulk in order to save more. In addition, Mydin purchase raw materials in bulk in order to save more cost. “Mydin sources merchandise both locally and from other countries including Bangladesh, China, France, Hong Kong, India, Indonesia and some more” (Armum,
Haier is a Chinese electronical appliances producer and it decided to take a 20 per cent stake in Fisher & Paykel Appliances Company (F&P) which is a New Zealand company. According to their agreement, besides the stake, Haier will also take two seats on F&P’s board and also they will cooperate in various business functions, including product development, sourcing, manufacturing and marketing. This action brought win-win situation to both companies. For Haier, unlike its domestic acquisition strategy, this alliance strategy enabled access to well established
The company understands the risks for working with U.S. auto industry especially during the recession in 2008, so they venture out to produce four new business units to minimize it by looking into investing on early-stage opportunities.
The company uses target pricing for the parts they purchase from suppliers. To Honda, customer satisfaction is top priority which they accomplish through suppliers competitiveness in quality, cost, delivery, development, and management. Honda gives its suppliers target costs and it reduces the cost through own ideas, technology, and improved productivity. Exhibit 1 illustrates Honda’s supply chain.