Video Case Study

Strategy at Regal Marine Regal Marine, one of the U.S.s 10 largest power-boat manufacturers, achieves its mission provi!ing lu"ury performance boats to customers worl!wi!e using the strategy of !ifferentiation. #t !ifferentiates its pro!ucts through constant innovation, uni$ue features, an! high $uality. #ncreasing sales at the %rlan!o, &lori!a, family-owne! firm suggest that the strategy is wor'ing. (s a $uality boat manufacturer, Regal Marine starts with continuous innovation, as reflecte! in computer-ai!e! !esign )*(+,, high-$uality mol!s, an! close tolerances that are controlle! through both !efect charts an! rigorous visual inspection. #n-hose $uality is not enough, however. -ecause a pro!uct is only as goo! as the parts put into it, Regal has establishe! close ties with a large number of its suppliers to ensure both fle"ibility an! perfect parts. .ith the help of these suppliers, Regal can profitably pro!uce a pro!uct line of // boats, ranging from the 011.000 three-passenger Rush to the 0200.000 1/ foot *ommo!ore 3acht. 4.e buil! boats5, says 67 8im 9uc', 4but were really in the :fun business. %ur competition inclu!es not only ;00 other boat, canoe, an! yacht manufacturers in our 01< billion in!ustry, but home theatres, the #nternet, an! all 'in!s of alternative family entertainment.5 &ortunately for Regal, with the strong economy an! the repeal of the boat lu"ury ta" on its si!e, it has been paying !own !ebt an! increasing mar'et share. Regal has also =oine! with scores of other in!epen!ent boat ma'ers in the (merican -oat -uil!ers (ssociation. 8hrough economies of scale in procurement, Regal is able to navigate against billion-!ollar competitor -runswic' )ma'ers of the Sea Ray an! -ayliner bran!s,. 8he Global Company Profile featuring Regan Marine provi!es further bac'groun! on Regal an! its strategy. Discussion Questions 1. State Regal Marines mission in your own wor!s. /. #!entify the strengths, wea'nesses, opportunities, an! threats that are relevant to the strategy of Regal Marine. ;. >ow woul! you !efine Regals strategy? 1. >ow woul! each of the 10 operations management !ecisions apply to operations !ecision ma'ing at Regal Marine?

1) 8he goals are to provi!e value, $uality an! satisfaction. #t is also important to operate with honesty integrity an! to have character an! of course to be profitable. 2) Strengths 8hey are well positione! on the super boat mar'et. Specially on the lu"ury mar'et Weaknesses Maybe RM is to speciali@e! on the higher range of the super-boats mar'et Opportunities 8hey can try to pro!uce in a lower cost by re!ucing !esign times, pro!uction times, improving processes an! using alternative materials an! pro!ucts. 8hey can also try to have cheater boats in or!er to have wi!er range of costumers. Threats RM is on the fun business an! this business is very susceptible to economical crisis. .hen there is an economical slow!own the people !ont 4invest5 on this mar'et. 3) 8he firm has chosen a !ifferentiations strategyA to have !istinctive pro!ucts )4best in class5 pro!ucts,, that means high value an! $uality pro!ucts for the costumer. 4) Location %rlan!o, &lori!a. 8he Unite! States has an important mar'et of powerboats Qua ity RM offers to the costumers lu"ury boats. 8hat means high $uality pro!ucts !roducts 8he company !esign, manufactures an! mar'ets // !ifferent boats in a lu"ury performance category. 8hey are constantly innovating an! patenting because parts can be copie! $uic'ly. !rocesses Bach mo!el is manufactures in a !ifferent assembly line "n#entory #mportant to have a great inventory an! goo! !istribution channels Layout Bach mo!el is manufacture! in a !ifferent buil!ing !urchasing 1/0 !ealers in Unite! States an! also !istributors in 10 other countries.

Regal Marine %perations Strategy

)6i!eo analysis,
%M ma'e !ecisions that affect achieving missions. %b=ectives centre! in 'ey issues such asA Cocation Duality 7ro!ucts 7rocesses #nventory Cayout 7urchasing 8he company is in %rlan!o, &lori!a. RM is one of the top-ten powerboats manufacturing companies. *ompany missions has 2 or E !ifferent !imensions. #n the area pro!uct the goals are to pro#ide #a ue$ %ua ity and satis&action. #t is also important to operate 'ith honesty integrity and to ha#e character in the very competitive mar'et of powerboats. %bviously on of the goals is to (e pro&ita( e an! to share the profits with the people of the enterprise. 8he employees have to participate with the success Sol! strategyA 8he firma has chosen a di&&erentiations strategy) to have !istinctive pro!ucts )4best in class5 pro!ucts,, that means high value an! $uality pro!ucts for the costumer. 8he company !esign, manufactures an! mar'ets // !ifferent boats in a lu"ury performance category +istribution channels are very important. 1/0 !ealers in Unite! States an! also !istribuitors in 10 other countries. 6ery competitive in!ustry. (n! that is by hey have lot of !ifferent pro!ucts to offer to the !ifferent consumers. Bach mo!el is manufactures in a !ifferent assembly line in separete! buil!ings. 8hey are constantly inovating an! patenting because parts can be copie! $uic'ly. So the consumer is getting a better pro!ucto each year. (nother ob=ective is to pro!uce in a lower cost. Re!ucing !esign times, pro!uction times, improving processes an! using alternative materiales an! pro!ucts.