Husky Case

HUSKY INJECTION MOLDING SYSTEMS CASE

1. Analysis of Competitive Advantage

a) In terms of customer value creation, what are Husky’s competitive advantages in the market where it competes?
The main sources of customer value creation for Husky right now are the market recognition and the successful history and partnerships that it has developed for years. Brand recognition as thehighest-performance machines in the market is a great source of advantage over its competitors.
The specifications of its machines are overly superior compared to its rivals’. For every plastic piece created by one of Husky’s machines in 6 seconds the best machine owned by its rivals would take 7 seconds at least, and it doesn’t make it at the expense of the quality of its products, in fact the outcomeis much better than the competence’s with a product with thinner walls, less waste and a lighter weight. So, not only the customers are able to shorten their processes in time by speeding them up, but also can they produce better products.
As stated in the text, “Husky’s systems were known for their speed, ruggedness, resin utilization and durability”. When a specific strategy and way of actionis well defined and known by everyone in the business, it is a sign of healthy business and great source of competitive advantage over the rest of the competitors. Customers know that if they need a high-end product, forged by the latest technology, with attention to detail and need it to perform at a high standard they can trust Husky. A more expensive product (around 10% or 20% higher than themain rivals’ are) sets a big distance with other “low-cost” competitors and strengthen the brand image reinforcing this vision.

As mentioned in Porter’s analysis, there are three major approaches when it comes to set a strategy for a firm: differentiation, cost leadership and focus. The more defined it is, the easier it is to align your processes to your objectives and the more competitiveadvantage you’ll have. There are companies that struggle trying to figure out where to go and what the next move should be due to the lack of strategy. Customers are confused about what the brand stands for and what to expect from its products. Husky’s main source of competitive advantage from the customer standpoint is that whoever has been in the market for some time knows where to go when it comesto quality and reliability. Husky’s “differentiation strategy” is crystal clear to everybody in the business and there is no confusion about this.
b) What are the sources of Husky’s competitive advantages? How sustainable are they?
The text focuses a lot in the edge that owning only 2 high tech facilities confers to the firm. I totally agree that the strategy suits the company and bestows agreat competitive advantage over competitor’s strategies with fragmented business schemes but in my opinion the foundation of their competitive strategy, as stated in the previous question, is the strict value proposition, a well-formed and consistent business plan and the firm commitment to the strategy itself.
I want to develop a list of the principal factors that have helped Husky throughout theyears, but to keep it organized I want it to be separated by the different sources, this way it will be easier to see which one gives a bigger edge in competing with rivals.
I have divided and classified the list into 3 main sources:
* Advantages from only 2 main facilities:
* Maximize synergies and expertise by having all the processes together and combined
* Benefits fromeconomies of scale. Not only in the production, but in the services and facilities for employees and the amenities provided to everybody in the factory
* Speed and flexibility
* Also convenient for employees with families that could seek promotions without changing facility

* Advantages from a defined strategy:
* Latest technology and highly automated processes
*...