COMMERCE 3KE3 Lecture Notes - Lecture 4: Aircraft Cabin, Dunlop Manufacturing, Hard Water
Document Summary
30% turnover, make an assumption what are u avoiding. Top 10% of customers accounted for 61% of sales and top 2% of customers for 53% Too dependent on these two customers power of buyers is a large threat. Has 60% market share in the aircraft industry. New faa regulations governing material content of aircraft cabin interiors has put this market in jeopardy. Only have 2% market share excluding aircraft (so residential and commercial) By comparison dcc had medium to high quality and price. Could deliver within 10 days to two weeks better than minimum of 4 weeks for most competitors. Could deliver faster because of proximity to major customers. Turnaround time was increasing because of capacity constraints and turnover. 4 year large increase in sales since acquisition: growth had resulting in scheduling problems and bottlenecks in the plant. Additional sales from waterloo plant would require alleviating these problems. Recently acquired wool yarn spinning mill near waterloo.
