Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 2, Problem 1.3VC
Summary Introduction

Case summary:

RM Company is one of 10 largest power-boat manufacturers in US Country. They achieve their mission of providing luxury boats to worldwide customers through their approach of differentiation. The sales increase in the states indicates that the strategy is working.

RM Company is involved in continuous innovation with the help of computer-aided designing, high quality molds and their constant monitoring for quality. RM Company also closely interacts with their suppliers to ensure that the supplier parts are also of good quality.

Their product line is 22 boats ranging from 19 feet to 44 feet-long boats. TK Person, the VP of the company says “We build boats” but we are in the ‘fun’ business. He states that the competition is not limited to the other 300 competitors but also other family entertainment like home theaters, internet, and so forth.

RM Company has also joined the American Boat Builders association. They are able to sustain their position in the market with the economies of scope approach in procurement.

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