Case I Overview and Rubric
Breezy Air Filters - Redefining the Business
Coming up for air
Breezy Auto Parts has been supplying the North American automobile industry with carburetors and air filters for more than half a century. With revenues of about $100 million a year, it is a significant player in the parts industry. Initially, it supplied carburetors and filters to each of the Big Three domestic manufacturers. When foreign car manufacturers entered North America to set up manufacturing operations, Breezy also developed relationships with the newcomers. It redesigned some of its products to fit the foreign models. It also introduced electronic data interchange (EDI) to support …show more content…
Analysis to get past paralysis
At the workshop, senior managers made the following observations:
• As a supplier to the auto market, it is dependent on its fortunes, but it has little influence over broad trends such as gas prices, or even the pace at which car manufacturers decide to redesign their vehicles for fuel efficiency. That redesign process may take years but Breezy has obligations now.
• Breezy already dominates the North American market for carburetors and air filters so that there is only limited scope for expanding sales in a market that is already saturated.
• 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