Dana Holding Corporation Case Study

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Introduction Dana Holding Corporation a leading public company in the United States’ automotive parts manufacturing industry. It mostly produces driveline products such as drive shafts, axles, and transmissions. It also provides service parts and thermal-management merchandises. Its customers include several companies that assemble light, medium, and heavy commercial vehicles both within and without the United States. Dana’s prosperity in the automotive industry comes from the business-level and corporate-level strategies it utilizes (Hitt, Ireland, & Hoskisson, 2014). The business-level approaches that Dana uses allow it to meet the demands, needs and preferences of its customers and to achieve impressive annual returns. The company’s corporate-level …show more content…
The company relies on the cost control to create a competitive advantage over its rivals in the automobile parts manufacturing industry. It has been able to capture a broad clientele in the United States based on the price (Hill & Jones, 2012). The strategy of cost control is usually based on a business’ internal efficiency, and it involves setting prices that attract many customers. It entails lowering the prices continuously to ensure the corporation remains the cost leader in its industry (Hitt et al., 2014). Dana achieves a cost advantage in the auto industry by minimizing the cost of sales and ensuring tight control over overhead and production …show more content…
The corporation needs a better business-level approach. The most efficient strategy for the company would be an integrated low-cost/differentiation approach (Hill, Jones, & Schiling, 2014). The method would require Dana to use both price advantage and product differentiation at the same time to create a higher competitive advantage in the industry. The company would have to maintain the lowest prices in the industry to retain more customers. It would also be required to continue producing items with unique features that appeal to the customers (Hitt et al., 2014). The proposed approach could help Dana achieve a long-term competitive advantage in the industry. It would assist the company attract and retain more customers through low price and unique excellent product features.The strategy would help the corporation to enhance its flexibility to environmental changes and would never be affected by economic variations. It would also give the business a better opportunity to learn new technologies and skills that are necessary for maintaining a competitive advantage (Hill et al.,

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