Whistler Corp Case Analysis Essay

892 Words Oct 1st, 2013 4 Pages
Decision Options

Whistler Corporation's president, Charles Stott, should take a few actions to overcome current weaknesses of the company and to make Whistler more competitive in the long term. Whistler Corp was successful in its business until 1985 because the radar detector market was not going through intensive price competition. However, after 1985, the price competition became severe and Whistler Corporation could not catch up with this change. As a result, it decreased its market share from 21% to 12%. The circumstance has forced Whistler Corporation to consider an alternative approach of different product development from their market research by leveraging their resources. Following the successful pilot of a new
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Two states had recently banned radar detectors and other states were considering a ban as well. In Europe, most countries had legislation already banning radar detectors. Considering the deteriorating domestic market, and the lack of growth potential in foreign markets, it does not make sense to spend money and resources to improve the manufacturing process. Therefore, Stott should gather much data about the effects of this program and should not take the second option in the current situation.

Moving Low-End Production Offshore:

Stott should eliminate this alternative. The lower costs of manufacturing would undoubtedly improve Whistler’s profitability over the short term but it sustains Whistler’s flawed manufacturing process. Since Whistler Corporation has a great strength in design and engineering, the best decision will be to concentrate on its core strengths and move the production plants to offshore.

Recommended Decision

Stott should choose to move all production offshore. The recommendation is made on the basis that it will enable the company to concentrate its core strengths and free up resources for expanded development into new product areas the company has begun developing for like: CB radios, battery chargers, anti-theft devices, FM antenna boosters, and marine UHF radios. By moving all current production offshore, Whistler can maximize manufacturing cost efficiencies.

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