Strategy and Structure of Optical Distortion Inc to Fit the Competition - Case Study Example

? Topic: Optical distortion Inc OPTICAL DISTORTION INC Executive Summary Optical distortion Inc (ODI) is a global poultry firm that manufactures contact lenses for chicken to address the problems of cataracts and other eye problems that birds go through. Having being invented in 1965 by Robert D Garrison and the chicken farm owner in Oregon, ODI has continued to grow and expand in the poultry industry. By purchasing of patents and other legal rights, it dedicated itself in providing a solution to birds that suffer from cannibalism and improve the retention problems by debeaking them. The aim was to increase the egg production and meat for its customers. The firm, serving in most regions in the United States, has increased its revenue and is making substantial margins from the sale of eggs The population of birds continues to grow not only in the US but it is rapidly spreading to other parts such as Europe, South America and Latin America. It has increased the efficiency of poultry production by reducing the psychological stress and trauma caused by debeaking and cannibalism.. However, the main challenge has been price fixing as farmers would not want to be exploited or exorbitantly charged. The ODI continues to penetrate new and unexploited markets through timely strategies set by its executives. It has gained reputation in the last 50 years due to excellent customer excellence, cost leadership and continued research and development in the industry. Through timely panning, execution and evaluation of its marketing and other programs, it has gained and continues to gain a larger market share in the industry. ANALYSIS Consumer Orientation A critical analysis of the firm reveals a set of problems that faces the firm. First, it how to hedge the ever increasing costs when farmers respond negatively to any increase in price. As the pointed out in the article, farmers would wish prices to remain low and affordable. This is regardless of many benefits a farmer derives from the services offered by the technical specialists from the firm such as reduced cannibalism, less trauma and greater feeding efficiency. It is pointed that advertising and promotional costs can only be offset if prices go beyond $0.08 per pair. Consumers learn about products from the advertising campaigns enacted and executed by the firm through promotional tools like trade shows, exhibition and newspapers in both local and national papers. Brand Awareness Consumers are well informed about the optical lenses manufactured by the firm as shown by the increasing population of birds in the all regions surveyed. A thorough examination of the chicken census reveals an upwards trend and has an incremental percentage of 6. %.It can deductively be revealed that more and more consumers both individual and organizational have favorable and regular purchasing patterns. Furthermore, through the services of breed and other extension service officers, consumers are motivated to purchase from the firm stocks. Company Capacity Optical Distortion Inc is worried about the costs that may soar higher with an increase in services without rising of prices. As evidenced from the financial statements, is an upcoming firm in the industry with a leaner budget and high production costs than the already established companies. Due to its limited resources and stiff competition from the mature firms, one of the executives is really worried about costs. The executive is indifference as whether to increase the advertising and promotional costs without increasing the price, as it will impact negatively on its financial performance. Its capacity is further tainted by the firm’s dedication by the management as none of them, if fully devoted to the affairs of the company. As pointed out p6, their financial and managerial is limited as evidenced on the company’s balance sheet. However, the company has adopted offensive strategies of diversification, innovation and product development to suit a variety of needs of customers. Collaboration Analysis The value chain collaborators are imperative in providing excellence service to their clients. For instance the breed specialists, technical officers and the New World plastics, Baltimore for selling them the quality lenses a cheaper price and the firm reselling at a profit. The ODI products are packaged in special boxes. They market their products through adverting through trade shows and displays in shows. All the above factors combined create a higher perceived value for the product that attracts and retains consumers. Their qualities of service, outsourced technology, attractive packaging materials and advertising campaigns have leapfrogged the sales volume for the firm. The main two problems the firm is facing are the financial and managerial constraints. Financial constraints can be evidenced the note fro one of the executives. This has negatively impacted on the performance as the firm is unable to hire technical specialist to offer excellent customer service. Furthermore, it can employ superior technology such as the one employed by the New World Plastics due to financial constraints. On the other hand, the managerial challenge is that is inadequate and ‘not fully committed as note in the article by Clarke (2009). This implies that there is inadequate planning of all its operations including customer service, all value chain strategies especially the administration of core business activities. The firm, therefore, ought to employ managerial specialists to mange and spearhead the entire affairs of the firm to realizes its missions of growth, survival and profitability. In addition the firm ought to move in tandem with globalization and ever-changing technological needs of customers. For instance through innovation and product development strategies programs, the firm is ought to institute a quality continuous programs to enable it survive the stiff competition from mature firms in the same industry. It can diversify into other market by producing better and sophisticated products that will readily satisfy the consumers demand. Conclusion The ODI firm’s product needs to be modified to suit customers needs. The management ought to alter the strategy and structure to fit the competition so as to enable the firm to adapt to the ever-changing needs of the customers. It is recommended that the firm implements diversification, product and market development as strategies to realize its goals of growth, survival and profitability. References Clarke, G. D (2009).Optical distortion INC: Harvard Business School. Harvard, April, 14th 2009. Read More