The company case strategy

Company Case Strategy

Based on the analysis of the firm and its industry, is the strategy appropriate? Explain the answer in detail.

No, the current strategy is not appropriate. The reason why is because, Husky has failed to account for new competitors entering the markets and alternative products. These two elements mean that they were able to eat away at the company's dominance in a number of different industries. At which point, the products that Husky was producing were seen as more expensive and inferior. A good example of this can be seen by looking at their largest competitor Mannessman Group. As they have a number of different applications that they are selling the most notable include: automotive, technical, medical, PET performs and thin wall packaging just to name a few. This is a larger amount of applications that are sold in comparison with Husky, which offers a limited variety. These include: PET performs and thin wall packaging. This is important, because the smaller numbers of applications are causing the company to lose market share. As alternative products are introduced, that can undercut their dominance in: key segments and offer better quality (at lower prices). Once this began to occur, companies such as Mannessman were able to: redefine the marketplace and the kinds of products that were in demand. At which point, Husky began to see an erosion in their earnings and they did not understand the changes that were taking place. ("Husky Injection Molding Systems," n.d.)

In this case, the strategy that the company is using is inappropriate. This is because management is ignoring changes that are occurring from: lower prices and alternative products that have been introduced. This is having an adverse impact on their balance sheet. As this is requiring, some kind of drastic action to prevent this situation from: affecting the financial strength of the company. ("Husky Injection Molding Systems," n.d.)

Recommend changes to the strategy to enhance, maintain or turnaround the performance of the firm

To change the performance of Husky requires utilizing a strategy that will embrace: innovation and cost cutting. Innovation occurs when the company is focused on developing applications that are: superior and less expensive than the ones that they are currently selling. This is troubling, because the current lines of products that are being offered, means that they are losing ground to alternative ones that are being produced. As a result, Husky needs to focus on developing products that are: competitively priced and have better quality. This will allow the company to adapt to changes that are taking place in the markets. ("Husky Injection Molding Systems," n.d.)

Cost cutting is when the company needs to focus on reducing, the overall expenses that it is paying to manufacture different products. Given the fact that the company is currently doing business in Japan and Korea, means that they could build a plant in the region that will produce the new alternative products. As managers could select locations that have: lower labor costs and are in close proximity to key markets (such as India or China). This would allow Husky, to create alternative products that will be competitively priced. Once this takes place, it means that they can begin to eat away at gains made by competitors over the last several years. At which point, the company can redefine the business model and how it is adapting to the challenges that it is facing. ("Husky Injection Molding Systems," n.d.)