HUSKY INJECTION MOLDING SYSTEMS CASE STUDY
...for Husky in particular was the shift to plastic bottles by soft-drink manufacturers at the same time that Husky introduced its PET bottle preform technology to the market. Demand was extremely high for this new product, and Husky was able to quickly capitalize on the new trend. This single market phenomenon in the 1970’s allowed Husky to generate significant profits which it then reinvested in other areas of the business, such as product line extension and global expansion, to drive the company’s growth. Husky’s technologically advanced products coupled with its understanding of customer needs have led to the company’s long-standing performance over time. Early in its history, Husky dedicated itself to producing premium injection molding machines and associated equipment in a market where performance, quality, and reputation are paramount in customers’ vendor choices. Husky’s product, which is superior to that of the competition in speed, size, durability, and resin utilization, has afforded the company pricing power which is reflected in the 10% to 20% premium it charges for its products relative to others in the market. The value proposition that Husky offers through its top quality machines and equipment has led to the market’s willingness to consistently pay high prices, a strategy that has been sustainable for Husky up to this point in time. Along with Husky’s product innovation is its differentiated strategy in selling injection molding systems. Unlike its competitors, who tend to focus specifically on one area of the market such as molds or machines, Husky offers a fully integrated product line in order to meet the complete needs of its customer base. This full-service approach allows Husky to receive a larger portion of its customers’ wallets and also enables the firm to form relationships with new accounts that often begin with the sale of small equipment components and lead to large contract sales for machinery. A second differentiating factor for Husky is its customized machine assembly. As opposed to providing a standardized, pre-made product to customers, Husky’s “built to order” approach supports the company’s premium prices by providing a value-added service to customers that is typically not offered by competing vendors in the market (with the exception of Engel). At the same time, this customization gives Husky insight into the specific needs of its customers, which can help the company develop innovative, new products to better suit the overall needs of the marketplace. Another element of Husky’s strategy is its practice of selling its machines and equipment exclusively through its own internal sales force, which is partly comprised of former Husky service staff members, versus enlisting the help of an independent agent. This practice is key to the company’s success in selling its premium priced products in that its technically trained sales force can properly communicate the quality advantage offered in Husky’s products to customers in order to obtain new accounts. On the service side, Husky operates regional facilities and distribution centers across the globe to locally service its customers. Husky understands that service is critical to the success of the firm and its ability to attract and retain customers since its machines operate at the core of its clients’ businesses. This decentralized approach to servicing accounts allows the company to develop strong business relationships with customers based on reliability and trust. Husky has intertwined its strategy throughout the fabric of the company, imposing its high standards of excellence across all facets of its business, from operations to corporate culture. The concentration of its manufacturing, development, and support facilities on two corporat...