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Opportunities for moog inc external strategic factors

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Opportunities for Moog Inc. – External Strategic FactorsOpening up of new markets because of government agreement – theadoption of new technology standard and government free tradeagreement has provided Moog Inc. an opportunity to enter a newemerging market.The market development will lead to dilution of competitor’s advantageand enable Moog Inc. to increase its competitiveness compare to theother competitors.Economic uptick and increase in customer spending, after years ofrecession and slow growth rate in the industry, is an opportunity forMoog Inc. to capture new customers and increase its market share.Stable free cash flow provides opportunities to invest in adjacentproduct segments. With more cash in bank the company can invest innew technologies as well as in new products segments. This shouldopen a window of opportunity for Moog Inc. in other productcategories.Decreasing cost of transportation because of lower shipping prices canalso bring down the cost of Moog Inc.’s products thus providing anopportunity to the company - either to boost its profitability or pass onthe benefits to the customers to gain market share.Threats Moog Inc. Facing - External Strategic FactorsChanging consumer buying behavior from online channel could be athreat to the existing physical infrastructure driven supply chain model.53
Imitation of the counterfeit and low quality product is also a threat toMoog Inc.’s product especially in the emerging markets and lowincome markets.New technologies developed by the competitor or market disruptorcould be a serious threat to the industry in medium to long term future.Rising raw material can pose a threat to the Moog Inc. profitability.Liability laws in different countries are different and Moog Inc. may beexposed to various liability claims given change in policies in thosemarkets.The demand of the highly profitable products is seasonal in nature andany unlikely event during the peak season may impact the profitabilityof the company in short to medium term.Intense competition – Stable profitability has increased the number ofplayers in the industry over last two years which has put downwardpressure on not only profitability but also on overall sales.Rising pay level especially movements such as $15 an hour andincreasing prices in the China can lead to serious pressure onprofitability of Moog Inc.5.2McKinsey’s Seven S Model as applicable to that organization.Mckinsey 7s model was first developed in 1980 by McKinsey consultants Tom Peters,Robert Waterman and Julien Phillips with help from Richard Paacale and Anthony G.Alhos G. Alhos. The model has been widely used by many and it remains one of themost popular strategic planning tools. It seeks to present an emphasis on the humanresources (Soft S), rather than the traditional mass production tangibles of capital,infrastructure and equipment, as a key to higher organizational performance.

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Term
Fall
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Tags
Wind, MOOG Inc, Bill moog, Moog Incorporated, Companies based in Buffalo New York

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