Issues faced by Edmunds and what lead the company to this situation.
There some issues that Edmunds Corrugated Parts and Services have faced that has made it to be in the position that it is currently. Initially, the company started with a problem of where to put up the industry. Otherwise, Larry’s grandfather was there to offer a barn where Larry would put up his first industry. The industry also had no money initially and therefore it had to start with loaned money from the grandfather (Stodghill, 2005). Through this, it made a break through to what seemed to be a dream at the first time to what it is currently.
The company initially was not capable of employing many people as it had only one hundred employees who were mostly neighbors. Therefore, there were probably not professional. Nevertheless, they were termed as hardworking workers. After the industry grew, the company was suffering from the issue of replacing the current employees who at this time were skilled with the new ones ((Stodghill, 2005). The reason being that they were loyal and they could not have left the company to search for a job elsewhere as the rest young employees would do.
The other issue that the company is succumbing on is the issue of competition. Initially, the company had a market share of 75% but lately, the market share has reduced significantly. This is due to the number of the company that has emerged manufacturing the same products. Otherwise, this has made it possible for the company to diversify their production. An example of the diversification that they have done is the production of the more flexible plastic films and reusable plastic containers. This has increased the customer demands on their products.
The industry also suffered an issue of the losing several industries especially in U.S due to the consolidation that was done by the paper industry. This has made the industry wipe out most of the industries that were served by Edmunds. The rest of the...
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