Process Improvement Technics Case Study
The competitive strategy of American Connector Company (ACC) was characterized by the company’s ability to provide quality and customization of its products. In the market, ACC was known was providing high quality products recognizable for its superior design and performance. The presence of excellent technical solutions is one of the operative strategies that helped in providing the quality products. In addition, the organizational culture among the management and the workers was focused on providing quality products. This made quality the key competitive strategy in the company.
The customization strategy was considered as part of the strategy aimed at providing quality products. The approach of customization focuses on ensuring that all connectors design meets the desired manufacturing specifications. Similarly, quality at the company ensures that all products met the needs of the customers. For instance, the company recorded up to 15 per cent of the total production. The employees worked with large customers in order to customize the products to certain solutions to handle certain connector problems. The company’s designers were also helpful in working with the customer’s engineers to enhance the development and design of the products. Therefore, the quality and customization strategy at ACC have made most of its products to be industry standards.
The competitive strategy of DJC is characterized by its product lines. The company’s product lines have helped it in capturing a huge market share in Japan. The company has close links and relationships with major computer, telecommunication, and electronic companies and distributors in Japan. Such relationships have helped DJC to place a strong barrier of entry in the Japanese connector market. DJC’s ability to make close contact with stakeholders and members in the industry is influential in ensuring its survival and profitability in the market. Secondly, DJC has a design strategy that focuses on simplicity and the manufacturability overlooking innovation.
Unlike most of the U.S companies, DJC ignores innovation and focuses on the production prices of its product lines. The production activities and processes becomes its approach for competition. In spite of the company adapting most of American designs, the company also focused on the customer’s needs to enhance customer satisfaction with the products. Most importantly, DJC has very efficient manufacturing processes that form part of its competitive strategy. In the past, the company relied on its manufacturing abilities as the ultimate source of making huge profits. The reliance on manufacturing has been repeated by many company’s managers who believes in the power of the production processes.
The differences in competitive strategies and operations strategies would increase the level of competition between ACC and DJC when DJC starts a plant in the U.SA. When DJC starts a plant in the U.S, ACC would be forced to understand the competitive strategies of DJC that includes the manufacturing processes in order to fight it in the markets. In addition, DJC would be forced to adapt some of ACC’s competitive strategy. For instance, DJC does not focus too much on innovation during the design and production of its products. This would negatively affect the company in the U.S market. Such a factor would trigger DJC to start producing innovative products targeted for the U.S market. In addition, DJC has been very successful in its plant in Japan. This would force ACC to improve its manufacturing processes to match the efficiency and the large manufacturing abilities of DJC.
DJC seems to be more competitive when it comes to making relationships and linkages with large companies and distributors. The application of the same strategy in the U.S would see the company gaining a certain percentage of the market share. Thus, ACC would be forced to start engaging large companies and distributors for the market of its electrical connectors. DJC would also face strong competition in terms of customization of its product lines. ACC has strong integration with customer’s engineers that ensures the customer’s standards are met. DJC would be forced to engage the customers in its product design and manufacturing processes. Therefore, the differences in the competitive strategies and operational abilities would increase competition between ACC and DJC.
I think both companies should be ready to respond in various in order fight competition in the U.S market. ACC should consider improving its manufacturing processes in order to match DJC. Considering that DJC relies on its production processes, ACC should improve the techniques of producing its products. Secondly, I ACC should be concerned with creating strong linkage with distributors and telecommunication companies in the U.S. This would help to block DJC’s ability in making linkages with the companies. On the other hand, DJC would be forced to start incorporating innovation in the design of its product lines, since many customers in the U.S appreciate innovative electrical products. In addition, I think DJC should consider the quality aspects of its products as inferior quality products would not be able to compete well in the U.S market. DJC should also incorporate customers in the product design in order ensure the products meets the customer’s specifications.