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Blue Ridge Manufacturing

By:   •  November 2, 2018  •  Essay  •  409 Words (2 Pages)  •  18 Views

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Blue Ridge Manufacturing current competitive strategy seems to be the differentiation strategy. Currently, Blue Ridge has most of its sales in the southwestern states thus has a focused market. Blue Ridge has a wide variety of towels with different sizes, and specializes in case customers need different sizes than what Blue Ridge currently offers. Blue Ridge has developed a new ink that soaks into the towel, will not wash out, and is non-toxic. Thus, Blue Ridge is trying to innovate new products and differentiate itself by developing new technology. Blue Ridge also plans charge a premium and sell the towels developed with the technology at a higher price.

Blue Ridge Manufacturing has adopted ABC system to determine product cost and ensure appropriate overheads are charged to the products manufactured. This will enable Blue Ridge to get appropriate customer profitability and thus enable Blue Ridge to focus customers that generate high profits or drop those that do not generate sufficient revenues to cover the expenses to support them. ABC costing is thus an appropriate costing system for Blue Ridge and is consistent with Blue Ridge’s strategy.

Blue Ridge Manufacturing (“Blue Ridge”) current competitive strategy seems to be the differentiation strategy.  This is established through review of the following characteristics. Blue Ridge has a focused market for sale of its towels as most of its sales are in the southwestern states. Blue Ridge offers a wide variety of towels with different sizes to meet the varied requirements of its customers.  In case a particular customer needs different sizes than what is offered, Blue Ridge specializes in developing towels that meet the requirements.  Blue Ridge has also developed a new ink technology to be able to differentiate it in the marketplace.  As mentioned, Blue Ridge has developed a new ink that soaks into the towel, will not wash out, and is non-toxic.  Blue Ridge plans charge a premium and sell the towels developed with the technology at a higher price. 

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