Reference no: EM133037433
Regal Marine, one of the U.S.'s 10 largest power boat manufacturers, achieves its mission - providing luxury boats to customers worldwide- using the strategy of differentiation. It differentiates its product through constant innovation, unique feature, and high quality. Increasing sales at the Orlando, Florida, family owned firm suggest that the strategy is working.
As a quality boat manufacturer, Regal Marine starts with continuous innovation, as reflected in computer aided design (CAD), high quality molds, and close tolerances that are controlled through both defect charts and rigorous visual inspection. In-house quality is not enough, however. Because a product is only as good as the parts put into it. Regal has established close ties with a large number of its suppliers to ensure both flexibility and perfect parts. With the help of these suppliers, Regal can profitably produce a product line of 22 boats, ranging from the $11,000 three-passenger Rush to the $250,000 40-foot Commodore Yacht.
"We build boats," says VP Tim Kuck, "but we're really in the 'fun' business. Our competition includes not only 300 other boat, canoe, and yacht manufacturers in our $17 billion industry, but home theaters, the Internet, and all kinds of alternative family entertainment". Fortunately for Regal, with the strong economy and the repeal of the boat luxury tax on its side, it has been paying down debt and increasing market share.
Regal has also joined with scores of other independent boat makers in the American Boat Builders Association. Through economies of scale in procurement, Regal is able to navigate against billion dollar competitors Brunswick.
Based on the above scenario and research to be conducted by you on the Internet:
- State Regal Marine's mission statement.
- Discuss if Regal's strategy of differentiation is effective to gain a competitive advantage.
- Identify the strengths, weaknesses, opportunities, and threats that are relevant to the strategy of Regal Marine.
- How would each of the 10 operations management decisions apply to operations decision-making at Regal Marine (These must be explained in-depth in the context of Regal Marine).
Reasonable assumptions that are not stated in the case will be accepted.
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