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What happens when a premium car maker (lets call it Mercedes) diversifies into making cycles? Well, it had no option – there were not enough people who can afford a Merc then and people needed cycles. It went ahead and created a revolution. It is the biggest cycle maker in the country today and seen with awe by everybody around.
The company went ahead and used the assemble line on which it was making Merc for its cycles. The staffs that were some time back manufacturing Merc were now making cycles. Technology was unmatchable and other cycle companies just stood and watched. It was great thing for the cycle business. When in the past has such high tech machine and technicians used for making cycles?
But what about the Merc? Its being manufactured on the same assembly line. The people who are testing cycles are also testing Merc!! Same safety test for a cycle and Merc!!! The same people & machine that is making cycles are making Merc one after another, on the same assembly line!!
Meanwhile the country has developed significantly over the last decade and there are enough potential customers for Merc now. But will this company now be able to compete with the new premium carmakers that specialize in making cars and have a dedicated assembly line for cars. Is it a good idea making Merc and cycles on the same assembly line? Can it do justice to its Premium car….or it should just concentrate where it is successful - the cycles?
Well this is a real life case study …industry is different …company is different…the facts are the same…what do you suggest? Focus on cycles? New dedicated assemble line for Merc? Or maintain status quo?
The company went ahead and used the assemble line on which it was making Merc for its cycles. The staffs that were some time back manufacturing Merc were now making cycles. Technology was unmatchable and other cycle companies just stood and watched. It was great thing for the cycle business. When in the past has such high tech machine and technicians used for making cycles?
But what about the Merc? Its being manufactured on the same assembly line. The people who are testing cycles are also testing Merc!! Same safety test for a cycle and Merc!!! The same people & machine that is making cycles are making Merc one after another, on the same assembly line!!
Meanwhile the country has developed significantly over the last decade and there are enough potential customers for Merc now. But will this company now be able to compete with the new premium carmakers that specialize in making cars and have a dedicated assembly line for cars. Is it a good idea making Merc and cycles on the same assembly line? Can it do justice to its Premium car….or it should just concentrate where it is successful - the cycles?
Well this is a real life case study …industry is different …company is different…the facts are the same…what do you suggest? Focus on cycles? New dedicated assemble line for Merc? Or maintain status quo?
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