Case Study Concept Design Services
Case Study; Concept Design Services
Introduction
“Over a 10-year period we have totally transformed our outlook, our resources and our prospects. From being and inward-looking manufacturing company, we have become a customer-focused, integrated service provider. From a large commodity supplier, we have become known for our value-added and innovative designs. Most importantly, our performance as a company has been little short of spectacular, and I see no reason why we cannot continue on this upward path [table 5.1]. I know that the Group board is very impressed with our achievements, and uses this subsidiary as its best example of successful innovation.”
James Thompson, the CEO of Concept Design Services (CDS), knew his confidence was shared by his colleagues. After all, CDS was believed to be one of Europe’s most profitable plastic household products (home-ware) businesses. Originally founded in the 1960s as Focus Plastics, the company’s growth had come initially from the manufacture of complex injection-moulded plastic components for large industrial customers. Following the acquisition of the company by a large consumer products group, it had rapidly extended its range to include popular household items such as washing up bowls, pedal bins, baby baths, buckets and dustpans. These were sold under the Focus brand name, initially through wholesale distributors and then increasingly to large national do-it-yourself (DIY) stores, often referred to as “sheds”. By the early 1990’s the home-ware business had grown to account for over 80% of turnover, which had itself more than doubled in 10 years. Additional large injection-moulding machines had been purchased to cope with the rapidly growing volumes of products. These machines provided many economies of scale that enabled the company to compete aggressively in a market where barriers to entry were low. However, competition was increasing, mainly from small, specialised manufacturers with low overheads. The
Introduction
“Over a 10-year period we have totally transformed our outlook, our resources and our prospects. From being and inward-looking manufacturing company, we have become a customer-focused, integrated service provider. From a large commodity supplier, we have become known for our value-added and innovative designs. Most importantly, our performance as a company has been little short of spectacular, and I see no reason why we cannot continue on this upward path [table 5.1]. I know that the Group board is very impressed with our achievements, and uses this subsidiary as its best example of successful innovation.”
James Thompson, the CEO of Concept Design Services (CDS), knew his confidence was shared by his colleagues. After all, CDS was believed to be one of Europe’s most profitable plastic household products (home-ware) businesses. Originally founded in the 1960s as Focus Plastics, the company’s growth had come initially from the manufacture of complex injection-moulded plastic components for large industrial customers. Following the acquisition of the company by a large consumer products group, it had rapidly extended its range to include popular household items such as washing up bowls, pedal bins, baby baths, buckets and dustpans. These were sold under the Focus brand name, initially through wholesale distributors and then increasingly to large national do-it-yourself (DIY) stores, often referred to as “sheds”. By the early 1990’s the home-ware business had grown to account for over 80% of turnover, which had itself more than doubled in 10 years. Additional large injection-moulding machines had been purchased to cope with the rapidly growing volumes of products. These machines provided many economies of scale that enabled the company to compete aggressively in a market where barriers to entry were low. However, competition was increasing, mainly from small, specialised manufacturers with low overheads. The