Corrugated Box Industry

CASE debate EDMUNDS CORRUGATED PARTS AND SERVICES. Larry Edmunds grimaced as he tossed his caller-outs latest every quarter earnings onto his desk. When Virginia-based Edmunds Corrugated Parts &038 answer Compeverys sales surged bypast the $10 million mark a while back, he was certain the company was well positioned for immobile growth. Today, the company, which provided precision auto parts and service to the domestic turn up stripe labor, still enjoys a dominant market distribute and is showing profit, although non quite the profit seen in days past.However, it is no longer possible to hack the fact that revenues were beginning to show authorise signs of stagnation. More than two decades ago, Larrys granddaddy loaned him the money to start the telephone circuit and because handed over the barn on what has been the familys Shenandoah Valley farm to parcel out as his first factory. Today, he operates from a 50,000 square-foot factory located near I-81 salutary a fe w miles from that old barn. The business allowed him to realize what had once seemed an al near impractical goal He was making a good living without having to leave his closely knit extended family and rural roots.He also matte up a sense of satisfaction at employing about 100 people, nigh(prenominal) of them neighbors. They were among the most hard-working, loyal workers youd find anywhere. However, umpteen of his original employees were now nearing retirement. Replacing those arch(prenominal) workers was going to be difficult, he realise from experience. The areas brightest and best progeny people were much more potential to move a personal manner in see of employment than their parents had been. Those who remained behind just didnt seem to have the work value orientation Larry had come to enquire in his employees.He didnt belief pressured by the emergence of any new direct competitors. After move slightly a couple years ago, Edmundss formidable market share based on its reputation for dependability and exceptional, personalized service was holding steady at 75 percent. He did feel plagued, however, by higher raw corporal costs resulting from the steep increase in steel prices. But the main ascen imperfection of concern stemmed from changes in the box industry itself. The industry had never been curiously recession resistant, with take aim fluctuating with manufacturing output.Now pick shipping products were beginning to make their appearance, broadly flexible charge plate films and reusable plastic containers. It remained to be seen how much of a dent theyd make in the demand for boxes. More worrying, consolidation in the makeup industry had wiped out hundreds of the U. S. plants that Edmunds once served, with many of the survivors either opening overseas facilities or entering into joint ventures abroad. The surviving manufacturers were investiture in higher quality machines that skint down less frequently, thus requiring less o f Edmunds parts.Still, he had to admit that although the highly fragmented U. S. fold box industry certainly qualified as a mature one, no one disadvantageously expected U. S. manufacturers to be dislodged from their position as major producers for both the domestic and exportation markets. Edmunds was clearly at a crossroads. If Larry precious that steady growth hed assumed he could count on not so long ago, he suspect that business as common wasnt going to work. But if he wanted the company to grow, what was the best way to achieve that goal?All he knew for sure was that once he indomitable where to take the company from here, he would quiet better. QUESTIONS 1. What would the SWOT analysis look desire for this company? 2. What role do you expect the net profit to play in the corrugated box industry? What are some ways that Edmunds could better use the Internet to foster growth? 3. Which of Porters competitive strategies would you recommend that Edmunds follow? Which of the strategies do you think would be least possible to succeed?