Consumer purchase decision factors and processes

3D Printing

Petriot is a manufacturing company that seeks to gain a competitive advantage in the manufacturing business. This company competes on a strategy of having products made in America. Nothing could be more made in America than products made via 3D printing at the customer's site. This is an emerging technology that could help Petriot to improve and extend its competitive advantage.

There are many different types of 3D printing, as this is an emerging technology. It is important for Petriot to understand the different types. It is worth considering that the proper way to analyze this issue is to first determine from a strategic point-of-view what the best type of 3D printing option is optimal for Petriot, and then to perform a quantitative analysis via the net present value technique, which weighs the cost of acquiring this new technology vs. The financial benefits that it is expected to bring. It has been determined that the best course of action is to adopt the 3D printing technology in order to capture competitive advantage for American manufacturing.

By using the net present value technique the company will be able to ensure that this project makes sense both in quantitative terms and qualitative terms as well. This makes the recommendation of adopting the 3D printing technology the right one.

Introduction

Petriot should adopt 3D printing technologies. These will assist the company in the manufacturing process, making it more efficient and lowering costs. Adopting 3D printing will allow Petriot to have a competitive advantage over foreign manufacturers in terms of the quality/efficiency balance.

Problem Statement

Should Petriot adopt 3D printing technology for use in its manufacturing business?

Method Used

The stated benefits of 3D printing is that it should help Petriot deliver quality manufactured goods at a competitive price. There is really only one way to look at a decision such as this -- the cost-benefit analysis. What does it cost and what will the benefits be? There are a number of different methods that can be used, but the net present value method is typically the best one because it uses smart assumptions and takes into account the time value of money (Investopedia, 2014). This is especially useful in the manufacturing business where a capital investment is being considered.

Findings

A quantitative analysis showed that Petriot can gain competitive advantage if it can lower its cost of production, increase the quality of its manufactured goods and lower the time it takes to product a good. 3D printing is among the technologies that can deliver these types of benefits (D'Aveni, 2013). It was found that, based on estimations of the cost of 3D printing technology vs. The additional sales that Petriot can win by adopting this technology, that 3D printing technology is likely to have a positive net present value for Petriot. That is to say, the technology will increase the net worth of the company. From a qualitative point-of-view, this also makes sense. Right now, there is a significant challenge for American manufacturing companies to compete with producers is low cost regions of the world. Yet, often goods from the developing world are of inferior quality. By reinforcing the fact that Petriot's American-made goods are superior, but also bringing the costs more in line with those from developing-nation producers, Petriot can enjoy competitive advantage.

Analysis