Transworld Case...

Topics: Automobile, United States, Luxury vehicle Pages: 2 (303 words) Published: July 30, 2013
Ellen Bright
oCEO of transworld auto parts (TAP)
oShe was a veteran in the auto and aerospace industries
TAP
o2 divisions:
1.luxury división : strong financial results
2.economy divisions: reported disappointing financial performance but good progress in achieving the targets for its non-financial goals oa $6.6 billion subsidiary of a U.S diversified manufacturing company owas a tier 1 manufacturer of original and after-market parts for automobile producers in the United States and abroad othey were affected by the global recession

oradical changes were needed in strategy
o
SUPPLIERS: are still facing challenges of higher costs, price and volume pressure, and, at times, erratic production schedules from their auto-producing customers ➢Rising automible production in asia and other emerging markets presents an opportunitu fo the larger multinational supplier to increase sales and profits ➢China, for example, is important both as a source of low-cost parts to ship abroad, as well as for local market vehicle demand

Defining a strategy:
oShe announced a dramatic restructuring
oTAP manufactured two core product lines—electronics and interiors—in four customer-centered divisions: luxury, economy, midpriced, and truck. oTAP served three geographic markets: North America, Europe, and Asia. oStrategy: go after the segements that give us the potential for the most profit : luxury car makers (in europe) , and economy car makers oMost of the plants affected will be in the US

oThey will have to differentiate in the economy división, by producing high quality car parts with the lowest lifetime Price oWant to be known for durability and low maintenance cost
oCommunicate our value position to auto makers
oIn the luxury division, our strategy will be to produce the most innovative, quality parts on the market
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