For this assignment I picked Erie to analyze. 1. Give a short description of their current strategic position -- products, segments, plants, capital structure, source of competitive advantage, etc. Consider their product line from a “consumer reports” standpoint. Erie sells products in all 5 of the industry segments. They’re the leader in the low-end market and tied for the highest market share in the traditional market. In the other 3 segments, they hold a lower percentage of the market. Their plant utilization is high for the low-end and traditional segments, but lower in the other 3 segments. Their competitive advantage is their focus in the low-end and traditional market. They currently have the lowest prices in these markets, making them the biggest seller in the low-end market, where low prices is important. They keep their costs low, making them a cost leader. 2. Assess their current …show more content…
They have the opportunity to improve their production vs capacity in their plants. They also have the opportunity to take over the low-end market because they are priced the lowest in the industry. Threats would be another competitor lowering their prices or coming out with a new lower priced product that is better than their current product. I think their sale volume could explode if they can keep their costs low and stay competitive price wise. Their profit potential could be lower than other because they are focused on a low-end product vs. a high-end product, but that could change if enough consumer want a cheap product vs. quality. I think they can maintain a competitive advantage as long as they haven’t priced themselves too low in the early years. If they did they won’t be able to keep up with the other companies when they lower their prices and could eventually lose