GOOD MORNING. w.1IBus HS12: Production Strategy (Chapter 10) GMTZ09E: Ellen Girod
What do these companies have in common? Schweizer Fernsehen, 10 vor 10, 08.11.2012
#1 THE THEORY. The main ingredients of production strategy. #2 THE CASE.THE AGENDA. Facts & Figures about Erowa AG. FMC = Flexible Manufacturing Concept Five forces (or more) of Erowas success story? #3 CONCLUSION. A summary of lessions learned. #4 DISCUSSION. Why produce in Switzerland?
All over the world.. 300 employees in 12 subsidiaries and 22 agents With over 100 clients in..Industry sectors: automotive, aerospace, medical, telecom, electronics Precision mechanics Mould industry: injection molds, stamping dies, bending tools
SUCCESS STORY OF # 1FSA : Their production concept: “Flexible Manufacturing Concept” as commitment to productivity / efficiency -> competitiveness Porters rivalry among existing firms # 2FSA : Continuous innovation as tradition -> competitiveness Porters threat of new entrantsEROWA AG. # 3FSA : Quality of their goods & services: Company claim “More than you expect” as commitment to excellence in high end segment Porters threat of substitute products & Porters buyer power # 4FSA : Flexibility of their high-end goods: allows niche supply Porters threat of substitute products & Porters buyer power & Porters rivalry among existing firms
SUCCESS STORY OF # 1CSA : Delivery: they produce close to clients all over Europe Porters buyer power # 2CSA : R&D level and benefit from spillover of ETH, PSI, EMPA & Co. Resource Based View (resource of know-how hard to copy for e.g. Asia)EROWA AG. # 3CSA : High skilled / educated human capital Resource Based View (resource of know-how hard to copy for e.g. Asia) # 4CSA : High end partners & infrastructure throughout the supply chain Porters supplier power
#1 PROFIT FROM THE CORE. Focus on your corporate vision and strategy. #2 COMPETITIVENESS. Make competitiveness your first commandment. #3 INNOVATION. Make a commitment to innovation.LEARNED.LESSIONS #4 EFFICIENCY. Never stop improving the efficiency of your processes & operations. -> through standardization, organization, automatisation & integration #5 LOCATION. Don’t produce in Switzerland unless you’re working in high- end segment for custom-made niche products.
INSPIRED BY:• International Business, Alan M. Rugman & Simon Collinson, FT Prentice Hall• Going international, Paul Ammann et al, Versus Verlag• Hidden Champions –Aufbruch nach Globalia, Die Erfolgsstrategien unbekannter• Weltmarktführer, Simon Hermann, Campus• www.erowa.ch• www.sf.tv• www.weforum.org/reports• www.futurebrand.com/wp-content/cbi/pdfs/CBI_2012-13.pdf• www.kof.ethz.ch/de/prognosen/konjunkturprognosen/• www.ubs.com/global/de/wealth_management/wealth_management_research/swiss _economic_forecast.html• www.invest-in-switzerland.com