American Connector Company Case Severity of Threat by DJC The American Connector Company (ACC) should be extremely concerned with the im-pending entrance of DJC to the US landscape. Any new entrant will most likely be of the mentality to try and take as much market share as quickly as possible. This course of action usually involves a period of time when the new company will plan on operating at a loss‚ and will thereby be will-ing to price below market average with small margins. Realization of
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Executive Summary: In order to make their plant globally competitive‚ American Connector Company’s Sunnyvale facility needs to improve on production‚ process‚ quality control and inventory control. They should optimize the production line to smoothen the process flow‚ increase the yield and reduce overall costs. They need to analyse and standardize their product mix. Also‚ schedule optimization will go a long way to minimize start-up and end costs and to avoid wastage. Work in process inventory
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AMERICAN CONNECTOR COMPANY CASE STUDY Q1 How serious is the threat of DJC to American Connector Company? Answer - The threat of DJC to American Connector Company is very high. Following are the reasons: Ø If DJC sets up manufacturing base in USA‚ as per the exhibit 7 and exhibit 8 the raw material cost for DJC in USA will drastically reduce. Current Raw material product and packaging cost is 14.89 which will reduce to 8.93 in USA.As the raw material cost is almost half of the total finished
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is the key to American Connector Company (ACC) success. ACC has lost market share to DJC over the recent years‚ which will be exacerbated if DJC opens a production facility in the United States. DJC has gained much knowledge from its Kawasaki plant and is going to enter the US market with factories that will be efficient. ACC is in trouble and needs to drastically change the way they do business if they want to survive. Looking and emulating DJC is the first step American Connector needs to follow
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American Connector Company ASSIGNMENT #1: Answer the following questions based on the case study for American Connector Company. Write succinct responses and include supporting references‚ tables‚ or graphs where appropriate. 1. How serious is the threat of DJC’s entry into the U.S. market to the American Connector Co. (ACC)? Competitors are a treat to American Connector Company but ACC is its own biggest threat. ACC is very inefficient in its operations – Sunnyvale has an effective utilization
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INDUSTRY OVERVIEW Connectors are used to attach wires to wires and other electrical components. In 1991‚ this was a fragmented $16 Billion Industry. DJC and American Connector Corporation were companies in the second tier of the market‚ with sales in the $500 million to $800 million range. IMPACT OF DJC’S ENTRY INTO THE US MARKET The year 1991 witnessed a sharp decline in sales (3.9%). The abundance of suppliers forced competition on the basis of quality‚ cost and quick delivery. Hence‚ the already
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American Connector Corporation (ACC) CASE OVERVIEW American Connector Corporation (ACC) is one of the 28 suppliers of electrical connectors‚ worldwide with sales greater than $100 million. ACC manufactured Electrical Connectors from Sunnyvale‚ California since 1961. Electrical connectors are devices made to attach wires to other wires‚ attach wires to outlets‚ attach wires‚ components or chips to PC boards‚ or to attach PC boards to other boards. Connectors were used in a variety of product
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is tentatively called ConneCtor. ConneCtor directly transmits and receives both data and voice. It is lightweight but heavier than a cell phone whose shape it emulates. It comes with a backlit grayscale LCD screen of moderate resolution. Its operating system is the PalmOS‚ which is common in PDAs. Thus‚ ConneCtor allows the user‚ among other things‚ to access the standard tools of Personal Information Management (PIM) and also performs standard cell phone functions. ConneCtor can send and receive
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