Crucial to the future of the company

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The senior management team at NRI Industries ("NRI") knew that they were facing a decision that was crucial to the future of the company. A plastic injection mouldings manufacturer, it had for the last 50 years specialized in providing industrial mouldings for automotive manufacturers. It was especially adept at moulding relatively large components, such as those located under the engine hood in automobiles. Large components were difficult to make to the high levels of tolerance and finish that customers demanded. Because of this ability, it had increasingly focused on the few large customers who were willing to pay its prices. Five years ago, 12 customers accounted for around 80 per cent of NRI's sales; now three customers accounted for over 90 per cent of sales.

Reference no: EM133742226

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