This document analyzes Delphi Packard's communication operations and provides recommendations. It includes an agenda covering competitive analysis, marketing research, the marketing mix, consumer insights, SWOT analysis, and strategies. It examines Delphi Packard's business lines and competitors, provides sales analysis and market share data. It also analyzes key competitors like Tyco, Molex, Yazaki, and evaluates their strengths, weaknesses, opportunities and threats. Finally, it proposes strategies and recommendations for Delphi Packard's business lines to enhance market share and strategic partnerships.
2. 2
Delphi Packard Comm. Ops. Analysis
Options:
1. Sailing
2. Horse riding
3. Traveling
Driver: Mona Lisa Brookshire
Make: Clark Atlanta University
Model: Sales & Marketing
Year: 2nd Year MBA
Car # 25 - Panther
Supervisor: David Carnegie
5. 5
Enhance
Market Share,
Mind Share &
Heart Share
Create a technology-
driven e-catalog and
troubleshooting website
for customers
Leverage automotive
capabilities and form strategic
business partnerships
• Quality
• Cost
• Responsiveness
• Adherence to Schedule (Manufacturing)
• Technology
• Global Footprint
• System Approach
• Development capability and service
• Innovation
• Integrity, Confidence and Trust
• Learning Organization
• Analytical Support
• On-Site Support
• Time to Market
• Integration (Systems, Tools & Processes)
• Conformance to customer specifications
• Aligned Vision
Key Differentiators & Top 3
6. 6
Market Opportunity Analysis
Can the benefits of the market opportunity be articulated
convincingly to a defined target market?
Does the company possess critical capabilities and
resources needed to deliver the customer benefits?
Can the company deliver the benefits better than any actual
or potential competitors?
Ideal business: High Opportunities & Low threats e.g. Tyco
Speculative business: High Opportunities & Threats e.g. Yazaki
Mature business: Low Opportunities & Threats e.g. Sumitomo
Troubled business: Low Opportunities & High Threats e.g. EAO
11. 11
TYCO
Strengths:
Technology driven e-catalog &
online support system
Booming healthcare business
allows Tyco to offset lackluster
performances in other business
segments
Opportunities:
Affiliation with Motorola enables
joint developments on smart
connections systems
Consistent development of products
to match the architecture of future
wiring harnesses
Weaknesses:
Limited customization
philosophies
Quality and integration
capability concerns
Threats:
OEMs are moving towards Dual Source
philosophy to include more than one
automotive supplier at a time
Lack of emphasis on ‘recognizable’
automotive connection systems in N.A.
12. 12
MOLEX
Strengths:
Breakthrough in customization
capabilities for system applications
Strong balance sheet with low
debt-to-equity ratio provides
internal funds for new investments
and acquisitions
Opportunities:
Acquisition of Cardell
provides Molex with in-line
connection system
technology
New micro-connectors will
enable customers to decrease
package size
Weaknesses:
Lack of high power applications &
automotive portfolios
Several operations in recession-
struck regions of North America
Threats:
Limited product portfolio prevents
Molex from supplying full vehicle
architecture
Recent cut-backs in OEM
expenditure on connectors
13. 13
YAZAKI (DCS)
Strengths:
Leading supplier of wire
harnesses to all eleven Japanese
automakers
Diversified customer base and
strong global capabilities
Opportunities:
Increasing GM business due to strong
alliances with GM group companies,
Subaru, Suzuki and Saab
Yazaki is able to choose its own
components & design specifications for
Toyota and other Japanese OEMs
Weaknesses:
Limited marketing of connector
technology
Weak engineering, design and
product development in Europe
Threats:
Poor performance with regards to
reaction time is decreasing Ford
interest in Yazaki products
Perception that the best technology
is saved for Toyota
14. 14
DCS Strategies/RecommendationsDCS Strategies/Recommendations
Focuson smaller competitorswith lessthan 5% market sharein the
automotivesupplier industry becausetrueinnovation usually comes from small,
inconspicuouscompanies(e.g. JST, Amphenol, FCI etc.)
Follow patent applications: not all patentslead to productsbut patentsstill
indicateacompany’sdirection
Monitor thetrend and formation of businesscontractsand strategic
alliances/joint ventures(especially global ones)
Incorporateaflexibleand/or variablecost structurethat focusesmoreon the
relationshipswith individual OEMs(reducefixed cost baseand align capacity with
changing market conditions)
Revamp businessmodels, streamlineoperationsglobally and encouragenew
branding of products
15. 15
LEAR
Strengths:
Strong program management
capabilities & product design
technology
Robust new business backlog
ensures significant revenue growth
in the coming years
Opportunities:
Successful joint ventures with
TNK have increased Lear’s
presence in the Asian markets
as a whole.
Growth in emerging markets
(especially in China & India)
Weaknesses:
High level indebtedness and recent
increase in SG&A costs due to high
investment in foreign businesses
Vulnerable to increase in interest rates
because of the increasing financial
constraints on the company
Threats:
Intense competition from global
players can adversely affect Lear in
the long run
Low customer diversification - 72%
of its revenues came from the 3 top
OEMs
16. 16
SUMITOMO
Strengths:
Technology trendsetter (several
Automotive Technology Labs
established in 2001)
Successful joint ventures with
Aisin Seiki, Denso & Toyota
Opportunities:
Increased automotive business with GM
Sumitomo plans to increase production
capacity by 50% with the creation of new
factories in Suzhou (Shanghai) and
Huizhou (Guangzhou)
Weaknesses:
Notorious for low quotes in the
beginning followed by price
increases later
Slow introduction of new and
innovative products
Threats:
Limited presence in the North
American automotive supplier
market
Slow development of intelligent
automotive systems has reduced the
demand for EDS products
17. 17
Strengths:
Yazaki’s state of the art Learning Center
facilitates advanced training in labs and
classrooms on EDS systems
Scalable Nodal Active Power (SNAP)
architecture with Johnson Controls has
enabled Yazaki to remain a key tier-one
supplier of EDS
Opportunities:
Recent promotion of decentralized
factories will facilitate continuous
improvement
Positions itself as the global
alternative to Delphi Corporation
Weaknesses:
Customer complaints about
Yazaki’s unwillingness to make
product changes for customers
Decreasing sales from former
main customer Nissan
Threats:
Centralization has greatly
increased transportation costs at
global locations
Top OEMS are dissatisfied with
Yazaki’s customization and design
capabilities
YAZAKI (E/EDS)
18. 18
E/EDS Strategies/RecommendationsE/EDS Strategies/Recommendations
Brand Delphi’sbusinesslineswith aspecific valueproposition and
product function (e.g. Lear’sIntertronics)
Launch auser-friendly Asian websitefor theJapaneseand Chinese
market and incorporatea global communication platform
Leverageelectronic capabilities(reduceweight and size), continually
integratewiring systemsand implement miniaturization and/or customization
systems(Focuson 80/20 ratio)
Launch innovativeadvertising campaignsto market new EDS
technology and design applications
Connect with R&D and find out recent changesin OEM demandsthat
could alter thebusinessenvironment
19. 19
EATON
Strengths:
Strategic alliance with Dana Corporation
culminated in the creation of the
Roadranger online-support website in 1997
Recognized for superior products: Eaton
Fuller AutoShift, Eaton VORAD Collision
Warning System & Eaton Fuller Solo Clutch
Opportunities:
New diverse product lines: Patented
ULF Ultralite Valve, M-Series Pumps, FP-
5000 Feeder Protective Relay, Powerfold
240 & Powerfold 204
Alliance with Nittan Valve of Japan has
increased Eaton’s presence in Asia
Weaknesses:
Revenue continues to decrease annually
(since 2001) because of the poor
performance of the Industrial and
Commercial Controls Segment
Declining sales in the fluid power
division and truck division continues to
affect the company’s operating profit
Threats:
Eaton has fallen prey to unstable
market conditions in Asia due to the
high percentage of restructuring
initiatives focused in China & Japan
Declining sales in the fluid power
division and truck division continues to
affect the company’s operating profit
20. 20
CARLING TECHNOLOGY
Strengths:
User-friendly eLibrary and product
catalog allows customers a wide
variety of options
Carling’s Tool & Die division ensures
that products are created without
costly secondary modifications for
each commercial vehicle client
Opportunities:
Innovative new product line: Miniature
and Sub-Miniature PC Mount Switches,
Contura VP-Series Illuminated
Indicators, Mirror Rotate Control and
Flat Rocker Actuators
Launch of new user-friendly Chinese
website to service its Asian OEM clients
Weaknesses:
Limited marketing of commercial
vehicle electronic and switch
components
Weak efforts to gain global
presence in Europe and Asia
Threats:
Overdependence on American market
(over 77% of sales)
Mounting costs of recent acquisitions
have backfired and continue to threaten
the profitability of the company in the
short term
21. 21
EAO
Strengths:
EAO Competence Centers focus on
three successful modules: Form, Fit &
Function in order to meet commercial
vehicle design and engineering
requirements
Recognized for its Zero-Fault Rating
with SMT placement/soldering lines and
PC-controlled test equipment in the
commercial vehicle industry
Opportunities:
TOCUS guarantees Total Customer
Satisfaction and ensures the value
propositions of competence, reliability
and competitive edge
Recent launch of HMI products with
customized switches featuring touch
sensitive technology include the Series 56
pushbuttons (suitable for partially
sighted, handicapped and disabled users)
Weaknesses:
Limited presence in the United States
and Asian markets
Poor development, design and
engineering capabilities in the Asian
market
Threats:
Total reliance on the European commercial
vehicle market
Eaton’s commercial vehicle segment brings
in the lowest amount of revenue to the
company each year
22. 22
DMS Strategies/RecommendationsDMS Strategies/Recommendations
Penetrate anew market nicheand namesomeproductsaccording to
innovativeOEM product lines(e.g. subtlereferenceto Chrysler’swinning 300
flagship Sedan)
Build volumein lower cost production locationsand reducematerial cost
by identifying cheaper alternativeresinsand metals
Introducecorporate-widedesign implementation incentivesfor
employeesthat comeup with product design patentsand/or ideas
IncorporateSix Sigmaand Lean methodsto examinenew waysin which
DMScan improveprocessesto eradicatewaste, defectsand variability on the
manufacturing sideasopposed to focusing primarily on theengineering
aspect of thebusiness
Investigateemerging technologies, let go of unprofitableprogramsand
promoteR&D expenditure to focuson alternatebusinesslines
25. 25
Information Sources
• Syndicated Data: AC Nielsen/IRI Reports
• Global Insight/World Markets Research Center
• Internal Financial Data
• Customer/Retailer Data
• Business Source Premier/Data Monitor
• Trend Reports
• Customized Research (qualitative & quantitative)