American Connector Company - A Competitive Assessment

Industry Overview Connectors are used to connect wires to wires and other electrical components. In 1991, it was a subdivided $ 16 billion industry. DJC and American Connector Corporation are second-tier companies with sales of $ 500 million to $ 800 million. As DJC entered the US market, sales in 1991 suddenly declined (3.9%). A rich supplier is competing from the viewpoint of quality, cost, and short delivery time. As a result, US companies already having problems like ACC are cautious about DJC entering the US market.

1) to maintain the current situation, 2) to learn from the success of DJC and to change their way to prevent DJC from competing in the US market, we recommend that you have two choices in US connector companies I will. Indeed, the American Connector has only one choice. ACC is convinced that DJC will enter the US market? They need to change their mindset and do their best for the company. With the development of the US connector market, international companies are open to the market. ACC must change its mindset and stop self-satisfaction. The lack of competition stimulates ACC's innovation, not creating new ideas, maintaining the current situation, and not to overlook the surge of competitors

American Connector Corporation (ACC) and DJC are two different companies in both the strategy and the results they show. Appendix A contains a detailed analysis of the strengths and weaknesses of both companies. The following is a scenario analysis of DJC entry into the US market. The manufacturing cost of DJC is lower than that of ACC's Sunnyvale factory. Compared to the Sunnyvale factory, DJC costs about 40% per 1,000 units (see appendix for detailed calculations). The US market is very saturated and competition is intensifying. In such a market, the low price of DJC brings them a very good competitive advantage.

The American Connector needs to follow, display and simulation of DJC is the first step. The American Connector can restore market share and survive by focusing on quality and efficiency. Before DJC enters the US market, ACC needs to do the following to ensure success: In the past few centuries, Japan and the United States had different ideas and professional ethics, but in the past 30 years it became more obvious. The United States relies on recognition of money, technology maturity, and reputation / name. Japan has made progress in hard work, innovation, and advances in technology. Since they do not like many American companies, Japan adopted technologies created by American companies and reverse engineered and refined them until they became a major industry in the industry. A Japanese DJC company is a good example