Summary of Case
American Connector Company (ACC) and DJC Corporation (DJC) were both competitors in the second tier of the market, with sales between 500 - 800 million ranges. Both of them maintained distinct ways of managing their corporations. DJC, a Japanese corporation, relied heavily upon efficient manufacturing processes and maintain high quality as their competitive strategy and the means to achieve their annual profit goals. ACC viewed their success as dependent upon their ability to offer customized connector solutions for different customer’s needs and high end products. Recently, DJC has announced the construction of new plant in US, thus ACC faced a threat as there will be a highly efficient competitor launching their production facility nearby. Therefore, ACC must develop a plan of action to limit DJC’s intrusion into their established market.
Operation Strategy Approach
ACC has established a high quality supplier reputation whereby their products were recognized for their superior design and performance. ACC’s main operation strategy was to provide customization for customer’s need, which also emphasis on product quality and manufacturing specifications. The company’s commitment to customization and technical solutions has solidified their reputation and brings 15% of custom orders. However, ACC relied too much on market strategy which dedicated a broad product range and significant customization capability. ACC has expanded its production capacity when the forecasted demand was expected to grow during sustained periods. Due to unexpected market condition, ACC did not make any investment in new technology, thus the production equipment had became outdated. Hence, ACC became more concerned on their financia ...