C.E. Niehoff & Co., as a manufacturer of OEM heavy-duty non-brush alternators, is facing the following internal forces:
- Increasing Cost of Materials.
- Casting suppliers regularly move on to C.E. Niehoff & Co. for metal and energy surcharges. They are fully aware that they can do this because there are a limited number of sand and mold manufacturers.
- Increased Labor Cost
- Numerous Precision Machining, Hardware Distribution and Anodizing Businesses Available, The Non-Off-Brush Alternator Business is a mature market dominated by 99.9% CE Niehoff & Co , who has recently received several contracts from 9 major heavy truck manufacturers to provide alternators for MRAP (Mining Resistant Ambush Protection) vehicles. Large-scale capital investments, industry engineers and designers, skilled mechanic workers, special tools, fasteners and materials are required to compete in a brushless generator shop.
- Since the release of this document, there has been no substitute for CE Niehoff & Co. brushless alternators in the truck off-road market. These generators are given in the technical drawings of the lorry builder. Any modification of an existing product or process must be subject to robust and rigorous testing before the device is re-approved for use.
Rivalry between existing companies:
- None. C. E. Niehoff & Co. dominates this market.
And the following external forces:
- Low-cost foreign competition
- Remo Holdings L.L.C., a company known as Delco-Remy, is also a powerful, brushless generator business. Successfully applied strategies and tactics that went beyond the aforementioned internal and external forces, using "an operational strategy aimed at improving manufacturing efficiency, reducing costs, and increasing productivity while achieving the highest product quality." (Edgar-online) In marketing, this strategy will be defined as a mixture or hybrid, as it becomes part of other strategies (cost, differentiation and price).
In the midst of rising material costs, the company "exploits the international to develop new, lower-cost resources and to demand that its suppliers provide technologically advanced product lines, greater system support and management capabilities, deliver timely deliveries and lower system costs." (Edgar-online) "In order to increase production efficiency and to control labor costs, production processes are transformed into" old vertically integrated production facilities "(Edgar-online)" in-house production "Panchak, Patricia 9/01/03) smaller and more efficient "focus" factories … which generally offer a range of products in an equipment that facilitates lean manufacturing techniques "(Edgar-online), which places great emphasis on teamwork. The benefits that the company believes have been achieved in the focus factory environment, "reduced general costs" (Edgar-online), as some self-directed workgroups need little or no supervision and "enhanced productivity" (Edgar-online) Despite the low-cost foreign competition, since 1997, Delco Remy has been cooperating with European, Brazilian and Indian carmakers who have supported their global growth strategy through strategic alliances and created an "Infrastructure for post-market business". (Edgar-online) Delco Remy has been awarded the ISO90002 certificate and offers "full alternators, some of which offer outstanding design features that increase durability and longer life". (Edgar-online)
What does this mean for C.E. Niehoff & Co.? This means that it is based on this benchmark; there is still a stronger supplier base, the practical application of teamwork in the factory and a greater focus on global presence in Latin America and Asia.
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