Riordan Manufacturing Incorporated is an industry leader in the plastic injection molding with locations in the United States and China. The organization is in the development states of identifying key strategic internal and external factors. The objective of the organization is to implement a long-term strategic plan that will help identify opportunities, threats, and to aid in managing company resources. This essay will help Riordan decide which competitive strategies they can use in the United States and globally to improve innovation and sustainability. In addition, it will explain the use of these strategies and how the global market will affect the organization. Competitive Advantage Commonality
To possess a competitive advantage, an organization must generate a higher volume of sales or margins and obtain a larger customer base in relation than its competitors. An organization with a competitive advantage will offer better services and lower prices than their rivalries. Riordan Manufacturing is an industry leader in plastic injection molding, operating globally, and employing 550 people with projected annual earnings of $46 million. The company originally began with the processing of polymers into high tensile strength plastic substrate but later expanded into the manufacturing of plastic beverage containers.
The goal of most companies is to growth whether is vertical or horizontal. Riordan Manufacturing had experienced success common to companies such as Apple, Amazon, and Coca-Cola. Some commonalities include becoming an industry leader, research, and development progresses, and establishing a global presence. Apple had undergone the same path as Riordan Manufacturing. They share similar experiences and their competitive strategy helped them with the highs as well as lows of the market. Such occurrence was Apple’s inability to overtake one of its biggest competitors – Windows. However, Apple did not quit and their strong Research and Development (R&D) department created the i-products line (IPod, IPad, iPhone, and iTunes) break the market and become industry leaders. Amazon is another example of an organization that implemented effective strategies to their advantage. “By opening up its storefront to other retailers that were essentially competitors, Amazon transformed its business from direct sales to a sales-and-service model, aggregating many sellers under one virtual roof and receiving commissions from the other companies' sales” (Johnson, 2010, para. 4). It was through the innovative approach that Amazon could generate a superior sales margin. Coca Cola’s accomplishments were a result of similar experiences. As the world’s largest bottling company the organization has “a presence in more than 200 countries,” and a “portfolio that includes more than 3,500 products” (Coca-Cola Company, 2013, p. 2, para. 6). This organization has experienced success that few companies can ever dream of. The Coca Cola name brand reached global recognition giving them competitive advantages and established their global presence with companies such as Riordan Manufacturing.
Strategy in the United States
A differentiation strategy is the direction for Riordan Manufacturing. “We will strive to be a solution provider for our customers and not be a part of our customer’s challenges” (Riordan Manufacturing, n.d., para. 1). This approach in business shows customers loyalty from the company. Customers will appreciate a company that revolves around the customer. Focusing on differentiation helps to promote innovation within the company. This environment focuses the company products to meeting a variable amount of customer needs. The company will have to find ways to meet the demands of its customers so that it can meet the mission statement of itself. Sustainability will achieve a high standard as the company continues as the problem solver for the changing world....
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