Marketing and production capacity strategy for non-differentiated products: winning and losing at the capacity cycle game

Article Abstract:

Firms that market raw materials cannot rely on product differentiation to give their products a competitive edge. They usually resort to mechanisms for balancing supply and demand to optimize their profits. However, the availability of supplies is not always consistent. Firms have to have tools for accurately predicting supply fluctuations to be able to forge solid commitments with their buyers. It has been observed that cycles of over- and under-capacity occur in response to changing demands, prices and manufacturing costs.

Production Management, Market Research, Analysis, Economic aspects, Marketing, Product differentiation, Supply and demand, Raw materials

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Raising revenues

Article Abstract:

Product design company Palo Alto Design Group (PADG) boasts earnings of $585,271 per employee, representing five times the industry average. The company was founded by Jim Sacherman in 1983 and revenue in 1998 is estimated at $75.5 million. Instead of selling time, PADG sells services in return for stock options or warrants. PADG then invests good returns on original equipment manufacturer (OEM) products, such as plastic PC enclosures or plastic CD storage racks.

Management, Industrial design, Palo Alto Design Group Inc.

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