Question: What is Husky's strategy? Why has the company been so successful in the period prior to the recent problems?
Husky follows a differentiation strategy by trying to offer a higher perceived value than its competitors in order to convince customers to pay a premium price for the company’s products – across its product line, Husky charges a 10% to 20% premium. Husky’s success, prior to the recent problems, can be explained by the following value drivers:
Husky’s product features
The company is known in the industry for its high quality products. Husky’s systems are speedier than the ones of the competition (for PET products, Husky’s cycle time is 10% to 15% shorter) and they are believed to be more rugged. Furthermore, Husky’s systems are able to produce thinner walls than competitors’ machines, and their resin utilization and durability are higher. Unlike rivals, the company offers a fully integrated system of thinwall mold, machine, and product-handling equipment.
Husky’s customer service
The company established technical centers in key locations to provide technical support to its customers. Husky’s internal service force is known to be the strongest in the industry, and in addition, its sales force does an extraordinary job.
In addition to Husky’s systems, the company offers value-added services to provide greater perceived value for its customers: Husky’s experts plan injection molding facilities for customers, train customers, integrate production systems, and produce turnkey factories.
In addition to these internal developments, Husky was also able to take advantage of the fact that soft drink makers shifted rapidly to plastic bottles: The company could establish itself in the PET preform market by bringing a quick series of product innovations on the market; by 1995, 60% of the world’s preforms were manufactured on Husky systems.
All factors mentioned above contributed to Husky’s good brand equity that, in...
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