In 1998 xenia was one of the leading producers of the
transducers in the world. Company produced the most qualitative
transducers and was a world leader in producing the same. As the
company remain in the market for some years, competition from the
Asian companies was increased by a large margin. As Asian companies
have more resources and labours which made them sell the same
product for the price at which xenia was only constructing their
products. By this much price gap xenia's business was going
down.
Essay competition was increased xenia has to define something for
their new core competencies otherwise they would have been gone out
of the business.
For overcoming this problem Xenia's engineers redesign all the
components of the transducers which were later purchase from
xenia's vast availability of the suppliers. The new price was
defined according to the competition in rest of the world. By
selecting the specific supplier from there used list xenia was able
to get the drawings according to their specifications. Later the
supplier builder drawing into the component.
Companies management responded to the new competitive thread which
was going up and shifted the company's Cooperative strategy to a
new set of core competencies, new product innovation, supply
management and assembly.
The level of supply management was announced by introducing a new
executive position in the management of chief procurement
officer(CPO) which later became a member of the executive committee
which allowed him to input more in the developmental strategy of
xenia. Just in 3 years xenia reduced its suppliers number from 4000
to 400 and only dealt with the suppliers who gave them world class
status with hugely long contracts. Tea suppliers what the mean
participate in the development of the genius new transducers.
By doing this shift towards the core competencies, overall cost of
goods which was sold by the company world drop down to 50% and the
quality problems were totally disappeared. Overall time from
innovation to the actual product reduced by 45% and the production
Lead time was reduced by 65%. All of these results were achieved by
Senior in just 3 years which are a result of changing the core
competencies and understanding the market.
A description of the challenge or problem (e.g., Why is it a problem? How long has...
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