STRT4501 Husky Plastic Injection Molding Systems case analysis

Ailin Li

November 1, 2021

Husky is a specialized expertise in the market. They pursued a differentiation strategy that is

relies on the company's core values. Based on the company's purpose and five core values,

Husky is driven to provides complete and comprehensive production solutions to its plastic

industry clients. Husky's strategies include competing on quality, technology, and

dependability to justify premium pricing, focusing sales, and manufacturing on medium

tonnage machines, and specializing in a small segment of the plastics industry, such as PET

preforms and thin-wall applications. The company’s competitive advantage comes from its

superior customized products and services by focusing on the needs of customers in a few

market segments on a long-term basis. This approach is accomplished through developing

equipment that are innovative, durable, reliable, and efficient, as well as offering

professional, dependable, and rapid service to its clients, based on highly qualified

technicians that are closely related to the firm. Customers want machines that can operate for

longer and less waste of resin. Husky's investment about $25 million to its innovation center

(AMC) has given it a strong technological advantage to help customers improve productivity

and reduce production costs. It takes 10-15% shorter cycle time for production of soft drink

bottle and 5 times lower occurrence of surface blemishes than its competitors’ system.. In

addition to the innovation, Husky’s capabilities also include its culture of strong corporate

concern for environmental conservation. These elements create additional values captured by

customers.
Husky's services had a lot of added value. Instead of only selling machines, they also

provided a comprehensive industrial solution for the whole industry. Husky was positioned as

the domain leader because of this strategy. Owing to the superior performance of its products

in comparison to competitors and the worldwide professional service, clients are willing to

pay the extra 10-20% for price compared to other competitors’ products.

Husky's strategy has been a great success in the PET preforms market. However, in other

markets such as thinwall containers, the customer size is relatively small and the production

requirements and difficulties are lower than in the PET preforms market, which makes the

customer look at the advantages of the equipment in terms of operating costs, in addition to

the technical aspects of the equipment when purchasing. This prevented Husky's system

advantages from being apparent, and the single injection molding machine was expensive and

overly complex in terms of functional configuration. Lower-cost rivals entering Husky's most

profitable areas is the main threat at the corporate level. The company needs to address the

need to adjust its cost structure to reduce the pressure on prices. In addition, it should take

advantage of its own products and advanced technology to actively explore opportunities in

other markets and make effective system solutions according to potential target customers.

The management of the sales team is also important. For this kind of sales model that

requires long-term maintenance of customer relationships, it requires mature sales

experience. Husky should invest in marketing and salesforce training to help clients

comprehend how much they would save by adopting Husky’s equipment.