Because of the products unique attributes if

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Because of the product’s unique attributes, if suppliers increase their prices Thern may beable to pass along the costs to its customers who cannot find substitute products easily. According to Regional Sales Manager Scott Thelen, Thern has recently put a lot of emphasis on research and development into oil and gas. Thern was essentially gearing up for an increase in the oil and gas industry. This has yet to happen and thus other industriesfor Thern have suffered because the focus has been elsewhereThern excels with this strategy because of their focused products in a variety of industries. Thern spends a lot of time, money, and resources into the research and development side of their products. They will often test products for extended periods of time to ensure that the products can withstand the elements it will be faced with. Customers often come to Thern wanting very specific criteria to their product due to
Thern, Inc. 12regulations and elements these products will face. This focus differentiation strategy normally works best for firms that exhibit the following internal strengths: access to leading scientific research, highly skilled and creative product development team, strong sales team with the ability to successfully communicate the perceived strengths of the product, and a corporate reputation for quality and innovation (Porter’s n.d.). The two major competitors to Thern (as discussed in our first integrative assignment), are Ingersoll Rand and Engineered Controls International. Ingersoll Rand uses a cost leadership strategy. This generic strategy calls for being the low cost producer in an industry for a given level of quality. Ingersoll Rand sells its products either at average industry prices to earn a profit higher than that of Thern, or below the average industry prices to gain market share. In the event of a price war, Ingersoll Rand can often maintain some profitability while Thern suffers losses. Ingersoll Rand has developed what is known as Operational Excellence (OpEx). OpEx is “a philosophy and collection of tools to drive out waste from our processes. OpEx applies to all the processes we do in our business, from our first contact with the customer through the order fulfillment and delivery processes right up through the collection of payment from our customers” (How We Work n.d.). Engineered Controls International (ECI) on the other hand, more closely matches the generic strategy of Thern. Engineered Controls International uses a focused approach.The focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. The premise is that the needs of the group can be better serviced by focusing entirely on it. ECI often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other firms, like Thern, from
Thern, Inc. 13competing directly. Because of ECI’s narrow market focus, they have lower volumes and therefore less bargaining power with their suppliers. However, as previously mentioned,

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