Advents Business Strengths and Weaknesses
Advent Corporation was incorporated by Mr. Kloss a well-known person in consumer electronic product design and manufacturing. Mr. Kloss, himself was the strength of the Advent Corp., as ot was his brain behind Acoustic Research, Inc. and KLH Corporation which was known for its quality of electronic products they manufactured. OK They had a product line for home entertainment use that was slightly different from those in the market i.e. Advent loudspeaker, Advent frequency balance control, Advent noise reduction unit and an Advent tape deck.OK They were making the niche products which were little less in price than the price of the other products that people consider to be of medium range. They wanted their product to reach not only to the particular group of people, they wanted it to be distributed among all the customers who believe in quality along with lower price. Advent uses the new existing technology for their products. OK
Advent had a very high overhead cost. It had limited resources and capital and with that they wanted to reach the middle tens of millions of dollars in less than 5 yrs. They were suffering form loss. Advent corp. didn’t do much of market research which led to limited marketing. It seems Advent was not following any particular patented strategies as well. CORRECT AND ALSO, LIMITED MGMT SYSTEMS IN PLACE, BALANCE TO KLOSS, MARKETING WAS LACKING
Advent’s Core Competencies:
Advent always believed in giving a product to the market that is different is range and quality than the other products. They used to offer efficient products at the nominal price so that all the customers can afford their products. IS THIS A CC? NOT A CC AT ALL
According to me, the Core Competencies were:
The set of 5 products manufactured by Advent corp., i.e. Advent loud speaker; Advent Frequency Balance Control; Advent Noise Reduction Unit and the Advent Tape Deck were different than those that were already existed in the market. THESE ARE PRODUCTS NOT CORE COMPETENCIES AS WE NOTED CC = CORE TECHNOLOGICAL COMPETENCIES + CORE BUSINESS PROCESSES, SEE MY NOTES AND INTERWSIE LECTURE Those products used the acoustic technology. YES THE ACOUSTICS DESING, ELECTRONIC DESIGN, MECHANICAL DESIGN AND PACKAGIN ARE THE TRUE CC’S They believed in producing a totally new product applying new methods and new combinations which is perfect blend for human use along with the quality as their main motto. Product Policy was one of the most important things that Advent used to stick to. It helped Advent to serve the consumers with the best for the home entertainment use products and also helped Advent such that they served as an interlock to the consumers in the electronic market. They entered the market with the low price but with the intention to cover those areas of the market where no competition existed. IS THIS A CC? MORE OF A STRENGTH Mr. Kloss himself used to monitor all the operating procedures at the Advent to get the high quality product which satisfies the customers. He himself used to take care of the progression to assemble the finished product, the product workers used to clutch.
Marketing Management was believed to be the next area where the core competencies existed. The Vice-President of Sales at Advent was actively involved in making the nationwide distribution of the products through dealers across the country that were selected on the basis of their ability to sell and give proper service to the consumer. OK BUT NOT A STRONG ONE AS KLOSS DID ALL THE MARKETING They believed in continually optimizing its position rather than the following the long range plan giving more importance to production efficiency and rapid response to the daily response that the market has made. The current operating managers used to monitor the functions in excellent niceties. THIS IS A...