Register to read the introduction…
• So far, Breezy had focused on carburetors and air filters, something that it does better than others and a product in which it has decisive competitive advantages. Moving into new products would require R&D and retooling and it would have to be carefully coordinated with the redesign of automobiles for fuel efficiency that is under way in the industry.
• Key to Breezy’s existing competitive advantage is the tight integration that has established with its customers by using industry best practices, such as just-in-time manufacturing and just-in-time inventory. Any future development should build on that foundation.
• So far, Breezy had focused exclusively on the North American market. Because of its previous success and the overwhelming size of that market, it has never felt the need to look for markets in other parts of the world.
Filtering the options
After reviewing the company’s financial performance over the past few years, senior managers concluded that Breezy had to expand its markets if it was to sustain its profits. There were two options on the …show more content…
It could continue focusing on the North American market, working with its existing partners to develop products for the fuel efficient cars of the future. Alternatively, it could try to expand its product offering beyond carburetors and air filters into other auto parts. The market for standard auto parts was already saturated, however. One manager suggested that Breezy could try to move into the customized market, making specialized accessories for car enthusiasts.
Option 2: Breezy could try to develop new customers and new markets outside of North America. It was pointed out during the PESTE analysis that car manufacturing was growing in countries such as Brazil and India. Recently, India’s Tata Company had announced its intention to develop a popular car for the Indian market. Its target price for the vehicle was to be about $2500 a unit. It was suggested that Breezy start developing the same close relationships with overseas car manufacturers that it already had established with their North American counterparts.
The CEO assigned two teams to investigate each of these possibilities. The teams are to prepare a detailed course of action for their assigned option, together with an analysis of costs and benefits.
Please answer the follow questions. Each question will be marked out of 10 for a total of 60
• Key to Breezy’s existing competitive advantage is the tight integration that has established with its customers by using industry best practices, such as just-in-time manufacturing and just-in-time inventory. Any future development should build on that foundation.
• So far, Breezy had focused exclusively on the North American market. Because of its previous success and the overwhelming size of that market, it has never felt the need to look for markets in other parts of the world.
Filtering the options
After reviewing the company’s financial performance over the past few years, senior managers concluded that Breezy had to expand its markets if it was to sustain its profits. There were two options on the …show more content…
It could continue focusing on the North American market, working with its existing partners to develop products for the fuel efficient cars of the future. Alternatively, it could try to expand its product offering beyond carburetors and air filters into other auto parts. The market for standard auto parts was already saturated, however. One manager suggested that Breezy could try to move into the customized market, making specialized accessories for car enthusiasts.
Option 2: Breezy could try to develop new customers and new markets outside of North America. It was pointed out during the PESTE analysis that car manufacturing was growing in countries such as Brazil and India. Recently, India’s Tata Company had announced its intention to develop a popular car for the Indian market. Its target price for the vehicle was to be about $2500 a unit. It was suggested that Breezy start developing the same close relationships with overseas car manufacturers that it already had established with their North American counterparts.
The CEO assigned two teams to investigate each of these possibilities. The teams are to prepare a detailed course of action for their assigned option, together with an analysis of costs and benefits.
Please answer the follow questions. Each question will be marked out of 10 for a total of 60