Le Petit Chef : Executive Summary Essay

1068 Words Nov 1st, 2016 5 Pages
Le Petit Chef
MBA 678 Managing Innovation
Professor John C. Byrne
11/1/2016
Brijenkumar Amin
Executive Summary
The Le Petit Chef case mainly talks about the microwave industry, how it has grown, the technology concepts, industry overview and strategy implementation to overcome form competitive pressures. Major players serve three main regions (USA, Europe and Japan) and some local, smaller suppliers which tend to target the “less price sensitive high-end market”. The European market is quite fragmented due primarily to heterogeneous food preference and cooking habits, allowing regional players like which Le Petit Chef to offer tailored value propositions.
Innovation in microwave industry comes from-
• Technology – R&D, better wave distribution, combi-oven
• The development of quality compatible accessories
• Continuous Improvement of the user interface
Le Petit Chef microwave ovens account for 85% of the company’s revenues. Le Petit Chef products “commanded premium prices for their perceived innovation and high quality performance”. Thus, innovation is paramount. Le Petit Chef enjoyed high margins until the position attracts both larger European players and Japanese competitors
Thirty-Five percent of manufacturing costs of a basic unit was for Most of the microwave oven manufacturers buy magnetron and high voltage power supply unit, from the same suppliers including Sharp and Samsung. Le Petit enjoyed the similar economies of scale on these components as its competitors.…

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