Problem Diagnosis

Husky is the Canadian maker of the injection molding systems and it has established the enviable position within the market for the plastic processing equipment. A hefty premium is charged by the company for the performance plastics that are built by the company and these are considered as the highest performance systems. Explosive profitability and growth had been experienced by Husky in the early 1990s.

At the end of the year 1996, the company is enjoying record profits and robust growth while, the competitors have started to attack the core markets of the company. The revenue for the company had grown from $ 250 million to $ 600 million between 1992 to 1995. The financial results for the company have started to deteriorate and the CEO and founder of Husky, Robert Schad has to decide now about how the defend the position of Husky in its own traditional markets and to also consider the option of expanding to the other markets.

Analysis

We begin our analysis by first discussing the current strategy employed by Husky.

Current Strategy of Husky

The management of Husky has targeted the Preform Niche market as a leading firm within the plastic industry. Vertical integration has been perfected by the management of the company by designing and assembling the machines and the molds however, they have always relied on the outside vendors for building their products. The products produced by the company are high quality and therefore, they charged premium prices. Husky has followed a differentiation strategy and its strategy was designed around the core values of the company.

Husky Injection Molding Systems Harvard Case Solution & Analysis
Some of the key strategies employed by the company include competing within the area of reliability, technology, quality for charging the premium prices, focusing on the production and the sales of the medium tonnage machines and specialization within the narrow sector of the plastic industry that has been dedicated to the thin wall and PET preform applications. The positioning of the company is such that customers consider its solutions as comprehensive and complete and so they are willing to pay a premium price. Part of the strategy of Husky is also to provide environmentally friendly products along with enhancing the product reliability and credibility of their services.

The offering of the high quality integrated solutions for molding and machine making equipment both has provided Husky with a competitive advantage over the other competitors in the market as each of the operations are usually carried out by different companies. The above reasons are the factors due to which Husky has been growing faster as compared to its competitors. The company has always focused on selling premium quality products at premium prices within a niche market and it has fully capitalized its technological base for producing the PET systems and become the forerunner within this niche market.......................

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