Why Do You Think That Louisville Slugger Purchased The Alcoa Make It's Bats
1a. Why do you think that Louisville Slugger purchased the Alcoa factory rather than continue letting Alcoa make it’s bats? as a cost effective investment which allowed them to leverage purchasing power for raw materials and renegotiate existing contracts based on a larger business model more involved in quality control in order to maintain a positive reputation gain knowledge of experienced people which allowed them to get into the market more quickly
(To me, this has an element of why purchase, but seems to be more an outcome than a reason to purchase.) direct control instead of purchasing from someone else
(These aren’t really purchasing vs. contracting answers, they are more why did they get into the aluminum bat market)
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What value is added by different types of product variety?
more potential customers (variety of bats) allows each person to have a custom bat (different price points) creates loyalty
(restated from above ‘allows each person to have a custom bat’) everyone needs aluminum bat
3a. What would the impact of the new rules on costs and profitability?
immediate need for people to replace bats with rule conforming bat (positive) scrap inventory of existing bats (negative)
R&D technology that conforms to new rules (we need to decide on + or -)
(Not sure if we have a source for this statement because Louisville Slugger website states they are always in research and development of new bat technology) long term costs reduced because of lessened R&D cost to create ever higher performance bats
3b. What capabilities would enable them to easily transition to these new standards?
kept plant in California where support, services and different suppliers are easily accessible equipment in place already is capable of creating many different bats already people trained to create bats based on
(To me, this has an element of why purchase, but seems to be more an outcome than a reason to purchase.) direct control instead of purchasing from someone else
(These aren’t really purchasing vs. contracting answers, they are more why did they get into the aluminum bat market)
more …show more content…
What value is added by different types of product variety?
more potential customers (variety of bats) allows each person to have a custom bat (different price points) creates loyalty
(restated from above ‘allows each person to have a custom bat’) everyone needs aluminum bat
3a. What would the impact of the new rules on costs and profitability?
immediate need for people to replace bats with rule conforming bat (positive) scrap inventory of existing bats (negative)
R&D technology that conforms to new rules (we need to decide on + or -)
(Not sure if we have a source for this statement because Louisville Slugger website states they are always in research and development of new bat technology) long term costs reduced because of lessened R&D cost to create ever higher performance bats
3b. What capabilities would enable them to easily transition to these new standards?
kept plant in California where support, services and different suppliers are easily accessible equipment in place already is capable of creating many different bats already people trained to create bats based on