Problems
Winnebago has several issues that the company should consider. The company has been experiencing back-logged orders, which could be resulting in customer dissatisfaction and lost sales. Each year the back-logged orders continue to grow. During peak sales times, Winnebago has a difficult time delivering orders at the same rate as the rest of the year.
Increasing gas and diesel prices, along with an uncertain economy are making consumers think twice about spending money on travel and leisure items. Consumers are lacking peace of mind and confidence in the economy and it is affecting sales in the Recreational Vehicle industry. As sales go down, dealers are placing discounts on their current RV inventories. This strategy is helping to move the older models, however it is causing profit margins to shrink.
Internal Analysis
Winnebago is the lead manufacturer of recreational vehicles, with a brand name that is synonymous with motor homes. In 2001, Winnebago had top sales of $681.83 million during the first 6 months and leading market share of 18.9% in the RV industry. Although sales have decreased since 2000 where they reached $753.38 million, Winnebago is still a very successful company. Winnebago can owe its success to many factors. Producing good quality products and excellent customer service are some of the main reasons this company is so successful. They have realized that employees, customers, and dealers play an important role in total quality management.
Winnebago's mission is to exceed customer expectations by continually improving their products and services. They follow some basic values called the four P's to achieve their mission; people, products, plant, and profitability. The company believes that employees are the str ...