Husky Strategy Analysis

1. What is Husky’s strategy? Why has the company been so successful in the period prior to the recent problems? Answer this question using the concepts explained in the reading "Competitive advantage", sections 2.1 and 2.3.

Husky’s strategy:

Its strategy was to develop a new line of injection molding machines system that had better performance than other competitors. Meanwhile, it also has some derivative products for its customers, for example, molds for PET performs, hot runners for different molds, etc., which provide more convenience for its customers to get more profits from its products. Moreover, it has some value-added services; the company planed injection-molding facilities for its customers, train customers and produce turnkey factories. So in 1995, its greater strategy and competitive advantage made this company become the leader in manufacturing injection-molding machines.

The reason why Husky has been so successful in the prior to the recent problems:

1. Husky’s injection molding system has more advantages than its competitors. To compare some figures in the exhibit 6, we can see that a Husky preform system make a better performs with a cycle time shorter than a competitor’s system, and Husky’s systems were well known for their high speed, ruggedness, resin utilization, and durability. This kind of well-functioned system seemed more attractive for his customers and it made customers willingness to pay for its fees.

1. To analyze some competitive advantages of Husky, we can find that Husky concentrated its all manufacturing activities in two campus that provide more convenience for its related businesses, decrease the expense of personal management and transportation. Choosing a good campus can help the company reduce the opportunity cost and increase the customer willingness to pay. Husky managers were always willing to make more effort on the toughest technical challenges and to bring new technologies to market rapidly, which make this company more competitive in this industry. And these investments in technology development can widening the wedge between supplier opportunity cost and customer willingness to pay.

1. Through analysis some activities of this company, which generates customers willingness to pay, company can build insight of its competitive advantages. Husky deployed more than 300 people in 17 countries to response for both the local sales force and local service technicians. Compare to his competitors, husky provided more local technical support and training to its customers and the customers received the high level of service and consultation of its machines, which increase the customer willingness to buy its injection molding system.

1. The firm was also succeed for Schad’s personal values, which concern for the environment, devotion to personal health, dedication to hard work and perfectionism. Environmentally- friendly constructions and convenient service for its employees not only help this company to established its reputation, advertising its brand, but also let its employees work hard for his company and make more profit. In short-terms, it may not be have a greater influences or get huge profit to Husky, but in long-terms, it’s very important for its developing and innovation, which can reduce some operating cost and increase the customer willingness to pay.  

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