Strategic Planning: Husky Injection Molding...
Transcript of Strategic Planning: Husky Injection Molding...
Strategic Planning:
Husky Injection Molding Systems
October 22, 2012
Strategic Planning:
Husky Injection Molding Systems
October 22, 2012
Take 2 Consulting GroupTake 2 Consulting Group
Husky
Agenda
Summary of
Framework
Summary of
Framework
11
Statement of
Intent
Statement of
Intent
22
Presentation of
Alternatives
Presentation of
Alternatives
33
Recommended
Action Plan
Recommended
Action Plan
44
Implementation
Strategy
Implementation
Strategy
55
Risks and
Contingencies
Risks and
Contingencies
66
Five Forces Analysis
Threats of Entry & Power Levels: HighThreats of Entry & Power Levels: High
Industry:Industry:Injection Molding Machine
� High Threat of Entry
� High BP Suppliers
� High BP Buyers
� Low Threat of Substitutes
� High Rivalry Among Competitors
Preliminary Analysis
Willingness to Pay [Thinwall System]:Willingness to Pay [Thinwall System]:
Preliminary Analysis
Willingness to Pay [Preform System]:Willingness to Pay [Preform System]:
Current Strategy
Competitive Advantage Source: DifferentiationCompetitive Advantage Source: Differentiation
� Classic Differentiator
� Innovative products
� Operate more efficiently
� Serve a niche market
� Price Premium
� Value communicated through sales force
Industry:Industry:Injection Molding Machine
Statement of Intent
To determine Husky’s best course of
action to ensure continued success
despite a short-term soft market.
To determine Husky’s best course of
action to ensure continued success
despite a short-term soft market.
Goal:Goal:
Presentation of Alternatives
Increase competition with Nestal by lowering
machine prices to 20% of current markup.
Increase competition with Nestal by lowering
machine prices to 20% of current markup.
11
Hold prices constant while introducing a leasing
program for firms unable to finance new capital.
Hold prices constant while introducing a leasing
program for firms unable to finance new capital.
22
Increase machine prices to price of indifference,
eliminating differentiator status.
Increase machine prices to price of indifference,
eliminating differentiator status.
33
Baseline Analysis
Industry Demand Forecast for Husky Products:Industry Demand Forecast for Husky Products:
Baseline Analysis
Baseline Scenario KPIs [No Action]:Baseline Scenario KPIs [No Action]:
Analysis of Option 1:
Option 1 KPIs:Option 1 KPIs:
� Increases demand
� Perpetuates detrimental price war
� Boosts sales in a trying year
Analysis of Option 2:
Option 2 KPIs:Option 2 KPIs:
� Focuses sales pitch on benefits rather than price
� Allows firms low on cash to invest in machinery
� Spreads machine revenues over multiple years
Analysis of Option 3:
Option 3 KPIs:Option 3 KPIs:
� Increases profit margin overall
� Negatively impacts market share [Decrease in QD]
� Risky strategy in a tight market
Recommendation
22Hold prices constant while introducing a
leasing program for firms unable to finance
new capital.
Hold prices constant while introducing a
leasing program for firms unable to finance
new capital.
Implementation Short-Term
0-6 Months:0-6 Months:
�Implement leasing option
� Formulate credit terms & lease-to-buy terms
�Institute training seminars for sales force
� Prepare them to better communicate value
�Design new compensation plan for sales force
� Prioritize lease contracts & whole-system
sales
Implementation Short-Term
6-12 Months:6-12 Months:
� Continue to expand leasing program
� Redirect marketing to support leasing options
� Continue with heavy R&D Expenditures:
� Reduction of resin use & overall waste
� Energy efficiency & life cycle design
� Systems engineering
� Redesign sales force compensation plan
� Utilize AMC to build cross-functional synergies
Implementation Long-Term
1-5 Years:1-5 Years:
� Continue to direct marketing
funds to support leasing initiative
� Plan partnerships between AMC
& technical research universities
� Continue R&D investment with add’l funding
for energy efficiency & alternative energy use
� Focus design on leading the industry in
quality, low waste, and energy efficiency
Implementation Long-Term
5-10 Years:5-10 Years:
� Maintain R&D & AMC educational partnerships
� Utilize for advanced training of sales force
� Formulate & implement sustainability goals
� Expand current CSR initiatives
� Position Husky product lines & systems as
sustainable solutions
� Consider strategic acquisitions of smaller
preform PET or thinwall injector manufacturers
Contingency Plan
Demand does not strengthen in the near future.Demand does not strengthen in the near future.
11
� Lease option allows greater flexibility for
financially constrained buyers.
� Redirecting marketing towards leasing supports
continued cash flow.
� New focus on systems solutions opens up new
markets and forms of revenue.
Contingency Plan
Prolonged Resin cost increases at greater rate.Prolonged Resin cost increases at greater rate.
22
� Investment in low resin
technology and low waste design
hedges against increases in price.
� Can also use this efficiency to
further differentiate product
line from competitors
Contingency Plan
Competition enters preform or thinwall market.Competition enters preform or thinwall market.
33
� Continue innovating through efficiency and whole
system solutions to differentiate Husky lines.
� Further emphasize Educational Partnerships:
� Build brand loyalty by training students on
Husky products
� Provides path to employment for engineers
Concluding Remarks
Thank you for your time.
Any Questions?
Thank you for your time.
Any Questions?