Product Development in Moog Inc
Moog Inc
Question 1
Product Development
Product development has been one of the main contributions to the growth of Moog Inc as a company in the motion and fluid controls manufacturing industry. Moog has used the strategy to enable the company develop its product and achieve a competitive advantage over rivals in the industry. The strategy deals with innovation of merchandizes and also bettering the current ones that are in the market. This new merchandise attracts new buyers as well as maintaining the current ones, therefore, taking them ahead of competitors in the industry. There are several ways which the company has applied this strategy in the industry. The company has applied differentiation which has contributed immensely on the development of the products sold which has enabled Moog Inc to widen the market. The organization has also prolonged the merchandise sold. This has reduced the probability of the company incurring losses as a result of failure of a particular product which they deal with. Having a wider range of products for sale has been beneficial for the company in acquiring new customers.
Production
Continuous production of new and better products by Moog Inc has been critical for the growth of the organization, enabling them to grow in more markets. The company has built more industrial units to ensure maximum production is realized. This has been supported by various research and developments, which has allowed the company to increase capacity in terms of production ability. This has enabled the firm satisfy the demand of the products dealt with to even wider markets in and out of the country. The company has been producing additional products for the market including airport runway surveillance which detects foreign object as well as weapons store management system which is an efficient tool in the military. This has encouraged efficiency to the customer base, therefore, giving the company a competitive advantage among the rivals in the industry as well as increasing performances by the organization.
Distribution
The company has been able to achieve efficiency and success in distribution of products to market base over the recent years. This has been achieved by corresponding the demand from customers and the production of the company in terms of logistic features. This has enabled the company to decrease costs of distributing products to customers through increased reach to customers in a quick and efficient way. The company has also understood the needs of the markets they sell products to which has brought about efficient marketing by reducing traffic for the products to arrive to the customers. This strategy has brought about an increased buyer reach since Moog Inc’s distribution channel is fast even in far areas, enabling the company to grow and develop in the industry. This has provided a competitive advantage for the corporation.
Marketing
Moog Inc has used this strategy to discover and go into new markets, enabling the firm to be present in more countries in the world. This has led to the growth and development of Moog Inc as a brand due to the global presence the company has been able to achieve. The firm has also had an effective marketing strategy through use of celebrities to advertise the products they deal with amongst other publicity campaigns which has allowed the company to have an increased customer base. This has been seen as an effective way of achieving growth since the company is considered one of the leaders in the market the firm operates in. This has resulted to increased revenue in the company. With sufficient marketing, the company has seen rapid developments in innovation which has enabled Moog Inc meet the needs of the buyers.
Finance
Moog Inc has been able to achieve competitiveness and market leadership in the industry the company operates in due to increased financing which has brought about efficiency in the normal operations. The company has been able to acquire finances from sources such as bank loans among others which has allowed the organization to thrive. This has been key in enabling Moog Inc achieve the growth strategy and development since the finances have been vital in production of the required products as well as reaching to the market base. This increases the corporation’s performance in the industry since the finances have been key in the innovation and research processes, which aim to introduce new products to the market. The company has also invested heavily on heavy technology that is used in the production process which has allowed the firm to meet both commercial and military needs of their market. Finances have been key to the company’s growth in new markets since it has allowed the organization to expand. This has also increased profits the company gains and, therefore, providing a competitive advantage over other players in the industry.
Question 2
Cost Advantage
The main aim of this strategy is to get the lowest possible cost position in the industry and at the same time preserve the value the products Moog Inc sells. It generally deals with reducing costs of products to obtain a competitive advantage among other industry players. Moog Inc has applied this strategy which has isolated the company from the threats suppliers bring from their ability to absorb increased costs by accepting lower profit margins. This strategy has enabled the company to widen the customer base by aiming for the middle class individuals who are the highest in numbers among other customers (Butler, 2018). The company has also made use of vouchers and discounts to arrive at the sales objectives, therefore, dealing with the pressure that comes with the competition from other players in the industry. The corporation also emphasizes on easily accessing products sold as well as the affordability of the merchandize, which increases the awareness of the company among its customers. The strategy also increases the amount of sales the company makes, therefore, providing competitive benefit among other rivals. By applying this strategy, Moog Inc can deal with reduction of prices in the industry and if substitutes are threatened, the corporation can continue reducing the cost of their products to maintain their value.
Differentiation
The company operates with a differentiation business strategy which is applied by the organization to develop and create competitive advantages among competitors. The corporation applies this strategy to assist in realizing development strategies. The firm applies the strategy by positioning their merchandize in unique ways, diverse from alternative merchandize. This method decreases the pressure by other players due to the organization’s experience in the industry. Focuses on the company’s advertisement and promotions has allowed the corporation to differ from other players in the industry. The company has also widened the market by the use of this strategy since the organization focuses more on innovation of new merchandises. This has brought about an increase in the amount of revenue the company receives from the innovation capability. The company has also been existing for a long period of time which has provided a strong brand presence across the globe. This is a differentiation strategy that the company has applied over the years and it has built trust among long-time customers. For the organization to meet the changing interests in the market, the company has widened the products sold which has enabled Moog Inc to be differentiated from other players in the industry. This has also brought about trust among the customers on the merchandize sold.
Question 3
Diversification
This strategy consists of venturing a market with new merchandize in order to diversify on the products the company has been dealing with. Moog Inc has continued to apply this strategy to increase the competitive advantage among other industry players and more so, develop the brand. The company has cost advantages among other companies in the industry due to the firm’s capability to reduce costs, therefore, promoting diversification. This has allowed the corporation to try products that have never been introduced to the market, and in the end, being successful in the venture. This strategy has also allowed Moon Inc to carry out new businesses that meet the needs and expectations of buyers including doing green businesses which aim to protect the environment from pollution. This is due to the sensitization the world is currently having on the use of products that do not destroy the environment we live in and Moon Inc has analyzed the trend which has enabled them to carry out diverse businesses. This helps in building the image of the company (Charles Hill, 2007). Moon Inc has applied this strategy and it has improved the sustainability of the company, enabling the organization to arrive at their goals regardless of market instability. Moon Inc has managed the company’s portfolio from the divergence which has also assisted in reducing risks in the market since merchandize that are seen to be declining in sales are replaced by the new products. The company has made good use of the brand awareness as a step to introduce the new products into the market. This has allowed the company to not only improve performance in the industry, but also gain competitive advantage among other key industry firms.
Question 4
Globalization Initiatives
There are several factors that impact global competitiveness of companies located within the nation that apply to Moon Inc as the company increases markets to other nations. Moog Inc considered the local demand conditions which deal with the nature of demand. The company also considered the position of factors of production in the country which are necessary to compete in the industry the organization belongs to. The company also considered the condition in which the companies are created in the countries as well as how management and organization occurs (Charles Hill, 2007). All the three strategies have worked for Moog Inc and it has enable the company to penetrate new markets in other countries as they seek to expand. The globalization strategy has enabled Moog Inc to increase the company’s profitability by gaining from decreased prices which are as a result of economies of scale. Moog Inc has also refrained from merchandize customization and marketing strategies since the processes increases the price of products sold. The company therefore has marketed standardized merchandize globally for them to hugely gain from the economies of scale. The corporation has also applied the hedging of product prices to maintain global markets which are considered aggressive. By applying the globalization strategy, Moog Inc has been able to achieve global competitiveness, which has contributed to the firm’s advantage over other players in the industry.
References
Butler, A. (2018, January 10). Essay48. Retrieved from Moog Generic and Intensive Growth Strategies: https://www.essay48.com/13443-Moog-Porters-Generic-Strategies
Charles Hill, G. J. (2007). Strategic Management: An Integrated Approach. Boston: Cengage Learning.