Precision Worldwide
Executive Summary
Precision Worldwide,Inc (PWI) is a manufacturing company of industrial machines and equipment for almost 90 years. One of their plants located in Frankfurt, Germany, produces a particular model at a price ranging from $ 18,900 to $ 28,900. Moreover, the plant has another department that manufactures steel retaining rings. These rings are considered as an integrate parts of the machines they are actually manufactured. This department can sell their rings either internally or externally because they are a large market and demand.
The general manager of the German plant, Hans Thorborg has been considering the introduction of plastic rings as a substitute for the steel rings. His idea comes from one of his competitor, Henri Poulenc who has already implemented this new product in the market. There is a lot of potential for this product in this market because there is a lower manufacturing cost and a greater durability compare to steel rings. The company is thinking if it is worth to shift from steel rings to plastic rings. But there are a lot of facts that they need to consider. There has been conflicting views concerning the future of the steel rings departments if they should change to plastic rings in order to acquire competitive advantage in this market and what will they do with the special steel after they have implemented the new product.
Introduction
This report contains our analysis of the situation of Precision Worldwide, what are the alternatives dealing with the special steel and plastic rings and finally our recommendation.
SWOT analysis
| |Beneficial |Harmful |
|Internal |Strengths |Weaknesses |
| |Have a strong connection with the parent company in Ohio |The special steel has
Precision Worldwide,Inc (PWI) is a manufacturing company of industrial machines and equipment for almost 90 years. One of their plants located in Frankfurt, Germany, produces a particular model at a price ranging from $ 18,900 to $ 28,900. Moreover, the plant has another department that manufactures steel retaining rings. These rings are considered as an integrate parts of the machines they are actually manufactured. This department can sell their rings either internally or externally because they are a large market and demand.
The general manager of the German plant, Hans Thorborg has been considering the introduction of plastic rings as a substitute for the steel rings. His idea comes from one of his competitor, Henri Poulenc who has already implemented this new product in the market. There is a lot of potential for this product in this market because there is a lower manufacturing cost and a greater durability compare to steel rings. The company is thinking if it is worth to shift from steel rings to plastic rings. But there are a lot of facts that they need to consider. There has been conflicting views concerning the future of the steel rings departments if they should change to plastic rings in order to acquire competitive advantage in this market and what will they do with the special steel after they have implemented the new product.
Introduction
This report contains our analysis of the situation of Precision Worldwide, what are the alternatives dealing with the special steel and plastic rings and finally our recommendation.
SWOT analysis
| |Beneficial |Harmful |
|Internal |Strengths |Weaknesses |
| |Have a strong connection with the parent company in Ohio |The special steel has