Opsi: New Product Development and Market Share

Topics: New product development, Product management, Product life cycle management Pages: 16 (4513 words) Published: May 27, 2012
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MODULE TITLE: Operations Strategy for Industry


MODULE DATE: 21 – 25 May 2012

NAME/NUMBER: ....................................................

GROUP: ..................................................................





|Operations Strategy for Industry |

Global Enterprises PLC.

A Case Study.

Introducing Brancocil.

Focus of Strategic Review and Question.

The manufacturing strategy team are reviewing the production of three key products which are manufactured in a factory in Northern France. They are going to re-formulate the manufacturing strategy they use to produce these products. As they are now short of capacity and do not have the resources available for further investment, his will include a review of which products they will continue to manufacture themselves and which they will outsource to China, and also which parts of the key processes of Active Ingredient (AI) Production, Formulation and Fill and Pack, that they will continue to do, and again which stages they will outsource to a 3rd party toller. They will also formulate the remaining elements of the manufacturing strategy for the three products.

Goals, Strategic Intent, and Operations.

Current Company Strategy.

Until recently the Global Enterprises has had a consistent strategic intent, which has been to be the leading global company in its field. It achieved this by the high volume sales of a few standard products with limited variety or market customisation, protected by its patents through the Product Life Cycle, until the point at which patent protection is lost when generic competition results in the loss of 90% of sales, and therefore exiting the market. It has sought to maintain this market position through the development and launch of new products, as required or as the opportunity arose. These new products were brought to market, winning market share through the effective technical nature of the product, and by the strong marketing maintaining a strong market position. Operationally as it established a high market share, through world class performance and manufacturing excellence, producing high volume, long production runs, and with technical expertise and learning, and process improvement, it would drive down costs to maintain margins under competitive price pressures. So as the products proceeded through the PLC, with increasing competition and a pressure for a reduction in price, it can compete in the relatively cost competitive environment, but not at the ultra-low prices seen with generic suppliers. When products came off patent it could replace these with the launch of new products resulting from the long-term research pipeline.

New Company Goals

The company goal is to greatly increase profitability and achieve growth in its overall market share within the sectors in which it competes with its current product families. It wishes to do this in order to increase revenue. It is believed that an increased market share will be achieved by gaining a clear understanding of customers’ needs and requirements, and working in a manner to...
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