Nypro Inc (a) Anwers to Case Questions
1. Discuss the most salient points in the evolution of Nypro, Inc. and relate this to the company's future goals. Do you see any barriers or inconsistencies?
It is important first to understand the direction that the company wishes to undertake before identifying the more salient points in the evolution of Nypro, Inc. The company aims to maintain a sustainable growth in profits and revenues. It also aims to "enhance its customer focus and serviceability by being the customer's local source for customer injection worldwide". Extra research would yield the company's mission statement as: To be the best in the world at providing integrated and innovative plastics solutions, from design to delivery, creating value for our customers, employees and communities. As the case implies, before 1995, Nypro's strategy is focused on providing integrated and innovative plastics solutions to the world's leading companies, implemented by the premier global team of employees.
1) Change of focus: Under Lankton's direction in 1962, Nypro shifted its focus from small-scale customers to technologically driving clients with large-scale needs. It resulted to a drop from 700 to less than a hundred customers in 1995. However, let us note that this particular approach skewed the company's focus to bigger clients and hence, strategy and competitiveness were also aligned in this direction. Unserved markets, however, may results due to the limited customer base. These markets, although ignored by Nypro, can be capitalized on by competitors when demand for smaller, more commoditized services increase.
2) Shifting basis of competition: In relation to the first item (change in focus), Nypro was competing at the top of an over served market (and competitors were catching up) in 1995. Lankton sensed a shift to commoditization as customer demand seemed to focus more on delivery time to market and less on high precision of design.
3) Decentralized location strategy and project teams. To keep up
It is important first to understand the direction that the company wishes to undertake before identifying the more salient points in the evolution of Nypro, Inc. The company aims to maintain a sustainable growth in profits and revenues. It also aims to "enhance its customer focus and serviceability by being the customer's local source for customer injection worldwide". Extra research would yield the company's mission statement as: To be the best in the world at providing integrated and innovative plastics solutions, from design to delivery, creating value for our customers, employees and communities. As the case implies, before 1995, Nypro's strategy is focused on providing integrated and innovative plastics solutions to the world's leading companies, implemented by the premier global team of employees.
1) Change of focus: Under Lankton's direction in 1962, Nypro shifted its focus from small-scale customers to technologically driving clients with large-scale needs. It resulted to a drop from 700 to less than a hundred customers in 1995. However, let us note that this particular approach skewed the company's focus to bigger clients and hence, strategy and competitiveness were also aligned in this direction. Unserved markets, however, may results due to the limited customer base. These markets, although ignored by Nypro, can be capitalized on by competitors when demand for smaller, more commoditized services increase.
2) Shifting basis of competition: In relation to the first item (change in focus), Nypro was competing at the top of an over served market (and competitors were catching up) in 1995. Lankton sensed a shift to commoditization as customer demand seemed to focus more on delivery time to market and less on high precision of design.
3) Decentralized location strategy and project teams. To keep up