Case: Husky Injection Molding Systems
Name: ABC
Date: October 14, 2021
Key Issue
The demand for husky machines and systems has been reduced. Obviously, there is a rapid decline in the sales and growth, and obviously, there are several factors behind it. The sales growth has been declining due underestimation of demand by PET makers. Second, competitors have attracted customers through the low-cost strategy.
Recommendation
-
- There is a need for some new PET makes, which can create a perfect balance between supply and demand a and streamline the company’s positioning process
- The management of the company must have come up with the activity-based costing to come up with the low-cost machines and increase the sales
- It is recommended that the Husky must have to streamline its high-performance machine and advantages through am advertisement and promotions.
Rationale
Defining the new PET partners in the industry can help the company to track some new customer demands. Integration with the technology savvy companies is the best approach, which has been highlighted in the first recommendation. Moreover, the activity-based costing can help the company to contain the cost leadership strategy. The third recommendation effective, as it can help the company y to differentiate the process in an effective and lucrative manner.
Pros and Cons
Recommendation 1
-
- New PET makers can assist to increase the market share and regain the sales
- It can take much time to find a partner, ad it can hit the profitability of the company hard.
Recommendation 2
-
- Activity-based costing can assist the management to bring the efficiency in the operational process
- The activity-based costing for Husky can cause the misinterpretation of data and expensive implementation or execution.
Recommendation 3
-
- Streamlining the machine perforce can help to boost the sales process even having the difference in price.
- It cannot be implemented as a permanent solution, as competitors like Netstal are also increasing the competitive positioning through the marketing process.
Regard