Husky Injection Molding Systems is a global supplier of injection molding systems for the plastic industry serving customers in over 70 countries from 33 service and sales offices in 25 countries. (1) Husky announced a shift in its business strategy, in which they plan to quit production of closure molds and close their industrial mold shop located in Auburn, Massachusetts. (2) They intend to focus on their core businesses of making machines and molds for the production of PET (polyethylene terephthalate) preforms. (3) They also plan to add bottle development services to further take advantage of the growing PET market. (4)
A Short History of Husky Leading to the Shift in Strategy.
Robert Schad who emigrated from southwestern Germany in 1951 to Canada founded Husky in 1953. As an engineer he started the business designing and manufacturing snowmobiles and one of his first models the "Huskymobile" was a complete failure. To remain in business he was forced to perform machining jobs for other customers, which eventually led him into the injection mold business. Schad was able to enter the highly competitive injection mold manufacturing business by under bidding the competition by more than 50% on his first job, in which he …show more content…
(17) According to Robert Schad, "the Index system will become a meaningful part of our sales mix in Fiscal 2000 and our PET market share will increase as the market firms up in the second half of 1999". (18) The PET market in general for 1998 started slow, but rose sharply in the second half to pull the annual growth rate up to 20.3%. (19) As the facts indicate, Husky made the right decision to concentrate on the PET market and because of it 's engineering expertise, manufacturing facilities, service, and culture found at Husky, they will continue to hold a competitive advantage for a long