Strategy: Grippers Market USA 2010

Transcription

1 Strategy: 2010 Sector Grippers and Clamps Region USA Category Products Responsible Tim Rosenborg Description Robotic End-of-Arm Tooling; Grippers Demand 22,500,000 Sales 240,000 strategicfrontend.com Page , 06/04/2010

2 Situation I. Core Strategy A) Business Mission This captures the overall objective of the strategy. What the business model is designed to accomplish or deliver. In what ways the company makes money. It implies a sense of direction and a set of criteria against which to measure progress. B) Product/Market Scope This captures the essence of where the firm competes- which customers, which geographies, and what product segments. C) Basis for Differentiation This captures the essence of how the firm competes and in particular, how it competes differently than its competitors. strategicfrontend.com Page , 06/04/2010

3 Description II. Strategic Resources A) Core Competencies This is what the firm knows. It encompasses skills and unique capabilities. B) Strategic Assets Strategic Assets are what the firm owns. They are things, rather than know-how. Strategic Assets include brands, patents, infrastructure, proprietary standards, customer data, and anything else that is both rare and valuable. C) Core Processes This is what people in the firm actually do. Core processes are methodologies and routines used in transforming input into outputs. Core processes are activities, rather than assets or skills. They are used in translating competencies, assets and other inputs into value for customers. D) Organization/Management Team Organisation refers to the unique way in which competencies, assets, and processes are combined and interrelated in support of a particular strategy. Organisational Dimensions like, Function, Markets, Products, geography have to prioritized to shape the responsibility structure of the management team. The management team should have complementary experiences and skills to run the business. strategicfrontend.com Page , 06/04/2010

4 Description III. Customer Interface A) Customer Benefits Benefits refer to a customer-derived definition of the basic needs and wants that are being satisfied. Benefits are what link the core strategy to the needs of the customer. B) Pricing Structure You have several choices in what you charge for. You can charge customer for a product or for a service. You can charge customer directly or indirectly through a third party. You can bundle components or price them separately. You can charge a flat rate or charge for time and distance. You can set prices or market-based prices. C) Relationship Management This element refers to the nature of the interaction between the producer and the customer. Is the interaction face to face or indirect? Is it continuous or sporadic? How easy is it for the customer to interact with the producer? What feelings do those interactions invoke on the part of the customer? Is there any sense of "loyalty" created by the pattern of interactions? The notion of relationship acknowledges the fact that there are emotional, as well as transactional elements of the interaction of producer and consumer, and that these can be the basis for a highly differentiated business concept. D) Fulfilment and Support This refers to the way the firm goes to the market, how it actually reaches customers- which channels it uses, what kind of customer support it offers, and what level of service it provides. strategicfrontend.com Page , 06/04/2010

5 Description IV. Value Network A) Supplier Suppliers typically reside up the value chain from the producer. Privileged access to or a deep relationship with suppliers can be a central element of an novel business model B) Partners Partners typically supply critical complements to a final product or solution. Their relationship with producers is more horizontal and less vertical than that of suppliers. A imaginitative use of partners can by a key success factors. C) Coalitions Business concept innovations often requires a company to join together with other, like-minded competitors in a coalition. This is particularly likely to be the case where investments or technology hurdles are high. Coalition members are more than partners, they share directly the in the risks and rewards. strategicfrontend.com Page , 06/04/2010

6 Description V. Financial Planning... strategicfrontend.com Page , 06/04/2010

7 Strategic direction Rating Current state Future state Competitive position: Attractiveness: Strategic direction: restructure restructure grow Summary Create a higher value for end user industry/ machine builder and secure Gripper manufacturer by aggressive pricing... Investments Increasing in solution package for end user industry and machine builders; Investment in Training of Sales Performance Risk Control margin with segment scorecards Competitive position restructure select Attractiveness Market Share Expanding market share from 1,6% to approx. 7,5%; As we push functions such as absolute gripper position and end of stroke detection Price policy Gripper manufacturer: Pricing aggressively. End user manufacturer/ machine builder: Higher price by additional value and MRO average; Negotiate project specific pricing. Product portfolio Leverage BMF fur end user industry and machine builder; Create integrated brackets products like BMF 315; Expands Micro BIL slots style and lengths Costs Bring costs in line with the Hall effect sensors Marketing strategicfrontend.com Page , 06/04/2010

8 Strategic direction Application examples for unique solutions: micro BIL, BAW; BWL; Media exposure for unique applications (ads, PR, articles, internet); Cross reference data base grippers (gripper part number to our sensor number); Attack Packs. strategicfrontend.com Page , 06/04/2010

9 Product Restructuring Strengthening Rationalisation Expansion Cost reduction Supply Chain Sale/closure Technology programmes professionalization acquisition Structural adjustments Product portfolio rationalisation Set up of reshaping management system Technology optimisation Co-operations, joint ventures Divestment in independent units M&A Set up of reshaping management system Number Product 1 Cable, Connectors 2 Identification Systems 3 Induktive Abstand-/Wegsensoren 4 Mechanical Accessories 5 Optical Sensors 6 Sensoren DC 3/4-Draht 7 Sensoren magnetfeldempfindlic 8 Product Sensors 2 Restructuring 4 Strengthening 5 7 Revenue 8 6 Rationalisation 1 Expansion 3 Contribution margin strategicfrontend.com Page , 06/04/2010

10 Implications of proposed strategies Sales Total sales T Change in sales, compared to previous year T % Gross margin T % Finance Change in capital investments T 200 3,000 4,000 0 Change in R&D expenses T 3,000 2, Resources Change in headcount Change in manpower costs T Cash flow Cash flow T , , , Risk adjusted interest rate % 15.0 Discounted cash flow (DCF) T -7,103.7 strategicfrontend.com Page , 06/04/2010

11 Potential Market data Production 300,000 T rel. Production 300,000 T Penetration 75.0 Demand 22,500 T Sales 240 T Market Share 1.1 % Customer data Status Recorded Explored Supplied Customers ØDemand 0 T 0 T ØSales 0 T Share 0.0 % Potential Customers 50 Unexpl. demand 22,500 T % Incr. potential 22,500 T % Category Demand Share Quantity Ø Price # Solutions Cable, Connectors 10,317, % 576, Identification Systems % 7, Induktive Abstand-/Wegsensoren 1,347, % 26, Mechanical Accessories % 43, Optical Sensors % 26, Sensi Sensors % Sensoren DC 3/4-Draht 7,246, % 581, Sensoren magnetfeldempfindlich 10,849, % 435, Ultrasonic Sensors 120, % 4, = 29,881,100 Solution Demand Sales Market Share Quantity Share Electr. Ang. Gripper 120,000 1, % 10, % Electr. Par. Gripper % 24, % Hydr. Ang. Gripper 1,484,600 13, % 26, % Hydr. Par. 2-Jaw Gripper 2,475,000 35, % 50, % Hydr. Par. 3-Jaw Gripper 427,500 5, % 9, % Hydr. Toggle Gripper 19, % % Pneum. Ang. 2-Jaw Gripper 4,400,000 31, % 50, % Pneum. Par. 2-Jaw Gripper 8,800,000 94, % 100, % strategicfrontend.com Page , 06/04/2010

12 Potential Pneum. Par. 3-Jaw Gripper 1,584,000 16, % 18, % Pneum. Toggle Gripper 149,600 2, % 1, % Special Purpose Gripper 104, % 1, % Vacuum Cup Gripper % 51, % = 19,564,100 = 200,680 = 1.0 % = 342,485 = % strategicfrontend.com Page , 06/04/2010

13 Solution and problem inventory Solution Customer problems Product functions Available products Customer value driver Pneum. Ang. 2-Jaw Gripper -Incorrect part dimension verification -Incorrect part sorting -Incorrect grip on part -Double part detection Absolute Gripper Position: - part dimension verification - part sorting - part gripping - part detection - BAW product line - Micro BWL - BOD - Revenue expansion - Cost reduction impact - Enhanced competitiveness - Increased efficiency strategicfrontend.com Page , 06/04/2010

14 Competitors: Market Share Competitor Market Share % Sales strategicfrontend.com ,000 HANS TURCK GmbH & Co. KG ,500,000 Baumer Electric AG 5.0 1,125,000 ifm electronic gmbh ,000 others ,185,000 strategicfrontend.com Page , 06/04/2010

15 Competitor ratings 1 total HANS TURCK GmbH & Co. KG Baumer Electric AG ifm electronic gmbh strategicfrontend.com Technical product position Cost position Price level HANS TURCK GmbH & Co. KG strategicfrontend.com Baumer Electric AG ifm electronic gmbh HANS TURCK GmbH & Co. KG ifm electronic gmbh strategicfrontend.com Baumer Electric AG ifm electronic gmbh HANS TURCK GmbH & Co. KG strategicfrontend.com Baumer Electric AG strategicfrontend.com Page , 06/04/2010

16 Competitor ratings 2 Value added Organizational competence Marketing impact HANS TURCK GmbH & Co. KG strategicfrontend.com ifm electronic gmbh Baumer Electric AG Baumer Electric AG strategicfrontend.com ifm electronic gmbh HANS TURCK GmbH & Co. KG HANS TURCK GmbH & Co. KG Baumer Electric AG strategicfrontend.com ifm electronic gmbh Financial potential Location advantage Order fulfilment speed strategicfrontend.com Baumer Electric AG ifm electronic gmbh HANS TURCK GmbH & Co. KG Baumer Electric AG ifm electronic gmbh strategicfrontend.com HANS TURCK GmbH & Co. KG Baumer Electric AG strategicfrontend.com HANS TURCK GmbH & Co. KG ifm electronic gmbh strategicfrontend.com Page , 06/04/2010

17 Competitor: strategicfrontend.com compared with best competitor Rating Weight Competitor worse better Market Share x % Baumer Electric AG Technical product position x % HANS TURCK GmbH & Co. KG Cost position x % HANS TURCK GmbH & Co. KG Price level x % ifm electronic gmbh Value added x % HANS TURCK GmbH & Co. KG Organizational competence x % Baumer Electric AG Marketing impact x % HANS TURCK GmbH & Co. KG Financial potential x % strategicfrontend.com Location advantage x % Baumer Electric AG Order fulfilment speed x % Baumer Electric AG worse better Result 1.3 strategicfrontend.com Page , 06/04/2010

18 Competitor: Baumer Electric AG compared with strategicfrontend.com Rating Weight worse better Market Share x % Technical product position x % Cost position x % Price level x % Value added x % Organizational competence x % Marketing impact x % Financial potential x % Location advantage x % Order fulfilment speed x % worse better Result 6.7 strategicfrontend.com Page , 06/04/2010

19 Competitor: HANS TURCK GmbH & Co. KG compared with strategicfrontend.com Rating Weight worse better Market Share x % Technical product position x % Cost position x % Price level x % Value added x % Organizational competence x % Marketing impact x % Financial potential x % Location advantage x % Order fulfilment speed x % worse better Result 7.9 Strengths Strong in the accounts with existing products; Strong with analog solutions; Good product mix of sizes; Many BMF style sensors with integrated brackets; GMR technology. Weaknesses No photo solutions for progressive die; No short stroke BMF products; No metal BMF products; No target towards gripper market. Measures Focus on heavy duty gripper markets - welding progressive die; Develop more products with integrated brackets for light assembly work strategicfrontend.com Page , 06/04/2010

20 Competitor: ifm electronic gmbh compared with strategicfrontend.com Rating Weight worse better Market Share x % Technical product position x % Cost position x % Price level x % Value added x % Organizational competence x % Marketing impact x % Financial potential x % Location advantage x % Order fulfilment speed x % worse better Result 6.3 Strengths Very aggressive pricing; Strong in core geographic regions; Strong in the accounts with existing products; Good product mix of sizes; Many BMF style sensors with integrated brackets; Vacuum sensors; GMR technology. Weaknesses weak sales coverage in outlying geographic regions; No weld-immune magnetic products magnetic products; No short stroke BMF products; Limited analog solutions; No metal BMF products; No target towards gripper market. Measures Focus on heavy duty gripper markets - welding and progressive die; Meet their aggressive pricing in light assembly areas; Develop more products with integrated brackets for light assembly work. strategicfrontend.com Page , 06/04/2010

21 SWOT Analysis S - Strengths - One stop shop - Simple gripper part number extension to include senor - Guaranteed to work with gripper - part-in-gripper detection function - absolute gripper positioning function - gripper end-of-stroke solution - Strong Management W - Weaknesses - Sensor quality is sometimes suspect - No short stroke - No analog - No rugged duty - Limited flex cable options - Limited GMR technology O - Opportunities - need new solutions such as analog and BWL - part-in-gripper detection solution - absolute gripper positioning solution - gripper end-of-stroke detection solution - Possible market size limitation T - Threats - Sensors from gripper manufaturers (brand labels China) strategicfrontend.com Page , 06/04/2010

22 SWOT Campaigns Strengths - Opportunities - Quick Win: leverage part-in-gripper detection function for creating short-term sales increase - Quick Win: leverage absolute gripper positioning function for creating short-term sales increase - Quick Win: leverage gripper end-of-stroke function for creating short-term sales increase - Sell value - Look for pain at the machiene builder or end user level Strengths - Threats - Using strong management to counter Chinese competition Weaknesses - Opportunities Weaknesses - Threats strategicfrontend.com Page , 06/04/2010

23 SWOT Campaign 1 Detail Strategy Type Strengths - Opportunities Value Added Initiative Type Project Objective Quick Win: leverage part-in-gripper detection function for creating short-term sales increase Product in Focus Success Factor Major Competitor Comment Project Parameters Investments Risk Attitude Market Objective Price policy Product portfolio Cost Position Marketing Policy Comment Action Start 10/12/2006 Duration 1 Months Milestone Resources needed Budget 10,000 Status approved Justification strategicfrontend.com Page , 06/04/2010

24 SWOT Campaign 2 Detail Strategy Type Strengths - Opportunities Value Added Initiative Type Project Objective Quick Win: leverage absolute gripper positioning function for creating short-term sales increase Product in Focus Success Factor Major Competitor Comment Project Parameters Investments Risk Attitude Market Objective Price policy Product portfolio Cost Position Marketing Policy Comment Action Start 12/10/2006 Duration 1 Months Milestone Resources needed Budget 8,000 Status approved Justification strategicfrontend.com Page , 06/04/2010

25 SWOT Campaign 3 Detail Strategy Type Strengths - Opportunities Value Added Initiative Type Project Objective Quick Win: leverage gripper end-of-stroke function for creating short-term sales increase Product in Focus Success Factor Major Competitor Comment Project Parameters Investments Risk Attitude Market Objective Price policy Product portfolio Cost Position Marketing Policy Comment Action Start 12/10/2006 Duration 1 Months Milestone Resources needed Budget 12,000 Status approved Justification strategicfrontend.com Page , 06/04/2010

26 SWOT Campaign 4 Detail Strategy Type Strengths - Opportunities Value Added Initiative Type Project Objective Sell value Product in Focus Success Factor Major Competitor Comment Project Parameters Investments Risk Attitude Market Objective Price policy Product portfolio Cost Position Marketing Policy Comment Action Start 01/30/2006 Duration 1 Months Milestone Resources needed Budget 30,000 Status review Justification strategicfrontend.com Page , 06/04/2010

27 SWOT Campaign 5 Detail Strategy Type Strengths - Opportunities Value Added Initiative Type Project Objective Look for pain at the machiene builder or end user level Product in Focus Success Factor Major Competitor Comment Project Parameters Investments Risk Attitude Market Objective Price policy Product portfolio Cost Position Marketing Policy Comment Action Start 01/30/2006 Duration 1 Months Milestone Resources needed Budget 10,000 Status review Justification strategicfrontend.com Page , 06/04/2010

28 SWOT Campaign 6 Detail Strategy Type Strengths - Threats Value Added Development Initiative Type Crisis Management Project Objective Using strong management to counter Chinese competition Product in Focus Sensors Success Factor Competitiveness Major Competitor Omron Comment Reduce product cost by 30% Project Parameters Investments automation of production Risk Attitude accept Market Objective beat the Chinese competition Price policy low price Product portfolio extend standard products Cost Position low as competition Marketing Policy use our sales coverage Comment we need first products in 5 months Action Initiative Owner Ullrich Bischoff Start 06/18/2010 Duration 5 Months Milestone Prototype in 2 months Resources needed 4 engineers Budget 100,000 Status approved Justification strategic project strategicfrontend.com Page , 06/04/2010

29 Services Delivery time Sales Service Share Value Fee Value Fast (2-6h) 10 % 24, % 480 Overnight (< 24h) 15 % 36, % 360 Next Day (24-48h) 25 % 60,000 Following Days (3-6d) 20 % 48,000 On time (> 6 d) 30 % 72,000 = Σ 100 % = 840 Value add Sales Service Share Value Fee Value Sub Assembly 40 % 96, % 480 High Flexibility 20 % 48,000 Joint Managed Inventory 35 % 84, % 420 Kanban/Direct Line Feed 25 % 60, % 300 Kits 20 % 48, % 96 Parts exchange 25 % 60,000 Safety Stock 35 % 84, % 840 Special Packaging 27 % 64, % 648 Time Delivery Window 50 % 120, % 2,400 Track & Trace 90 % 216,000 Customs Handling 25 % 60, % 120 Paperless Ordering 100 % 240,000 = 41 % = 5,304 strategicfrontend.com Page , 06/04/2010