Sensor Case Study
About the Sensor Industry
Few people realize how essential the sensor industry is to today’s society. Sensors can be found in almost everything we use on a day to day basis. America’s demand for smaller, lighter and faster products has driven the technology to innovate at a break-neck pace in order to keep up with the demand. According to the National Science Foundation, “incorporating new sensor technologies, manufacturers can bring new capabilities to their products while improving performance and efficiency.” (NSF, 2008)
The sole shining star in the sensor industry was Sensors, Inc., which supplied a large majority of the manufacturing industry with electronic sensors for their products. In late 2009, the Securities and Exchange Commission (SEC) broke up Sensors, Inc. due to its monopoly of the U.S. market. (Capsim, 2010) The SEC released a statement which justified their move by stating, “We cannot allow monopolies of this sort to impact an entire industry! The customers that utilize these sensors are being held hostage.” (Capsim, 2010) Sensors, Inc. was dissolved into six smaller organizations: Andrew, Baldwin, Chester, Digby, Erie and Ferris companies.
A Fresh Start
After Sensors, Inc. was dissolved, the assets and liabilities of the company were divided by the six new companies with each company controlling 16.67% of the market. In 2010, over two-thirds of the sales for the new companies came from the low end and traditional segments of the market (see fig. 1). A break out star from the beginning, Andrews, Inc. saw a clear need to restructure their organization and focus on their attention on other, less crowded segments of the market.
Under a new management team, the first mission for Andrews was to decide on a strategy that would allow them to be the standout in the market. Andrews decided to focus on a hybrid strategy that incorporated a broad approach to the market while focusing on three key segments to increase revenue in: Low End, High
Few people realize how essential the sensor industry is to today’s society. Sensors can be found in almost everything we use on a day to day basis. America’s demand for smaller, lighter and faster products has driven the technology to innovate at a break-neck pace in order to keep up with the demand. According to the National Science Foundation, “incorporating new sensor technologies, manufacturers can bring new capabilities to their products while improving performance and efficiency.” (NSF, 2008)
The sole shining star in the sensor industry was Sensors, Inc., which supplied a large majority of the manufacturing industry with electronic sensors for their products. In late 2009, the Securities and Exchange Commission (SEC) broke up Sensors, Inc. due to its monopoly of the U.S. market. (Capsim, 2010) The SEC released a statement which justified their move by stating, “We cannot allow monopolies of this sort to impact an entire industry! The customers that utilize these sensors are being held hostage.” (Capsim, 2010) Sensors, Inc. was dissolved into six smaller organizations: Andrew, Baldwin, Chester, Digby, Erie and Ferris companies.
A Fresh Start
After Sensors, Inc. was dissolved, the assets and liabilities of the company were divided by the six new companies with each company controlling 16.67% of the market. In 2010, over two-thirds of the sales for the new companies came from the low end and traditional segments of the market (see fig. 1). A break out star from the beginning, Andrews, Inc. saw a clear need to restructure their organization and focus on their attention on other, less crowded segments of the market.
Under a new management team, the first mission for Andrews was to decide on a strategy that would allow them to be the standout in the market. Andrews decided to focus on a hybrid strategy that incorporated a broad approach to the market while focusing on three key segments to increase revenue in: Low End, High