Decision Options

Whistler Corporation's president, Charles Stott, should take a few actions to overcome current weaknesses of the company and to make Whistler more competitive in the long term. Whistler Corp was successful in its business until 1985 because the radar detector market was not going through intensive price competition. However, after 1985, the price competition became severe and Whistler Corporation could not catch up with this change. As a result, it decreased its market share from 21% to 12%. The circumstance has forced Whistler Corporation to consider an alternative approach of different product development from their market research by leveraging their resources. Following the successful pilot of a new …show more content…

This is the basis on which the company was founded, and this – as one executive noted – “is what the company does best.”

Action Plan

Stott’s objective is to overcome current weaknesses of Whistler Corporation and to make Whistler more competitive in the long term by moving all current product production offshore.

Short-term:
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Build low-end production manufacturing plants offshore.

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Move one segment of the project at a time overseas in order to avoid risks.

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Assist laid-off employees and have a plan in place for other opportunities in the company.

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Establish Research and Development Department. In order for Whistler Corporation’s strength in design and engineering, Whistler should catch up with short-term future trends. R&D will be helpful to know the most recent trends and technologies.

Long-term:
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Create a sophisticated employee training program in off shore manufacturing plants. Whistler Corporation needs to train its employee in order to reduce the rate of defection.

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Establish good relationships with offshore local suppliers.

Risk Assessment

There are a major disadvantages in moving production offshore. There will be unemployment that will arise. In order to keep costs down, Stott can keep one plant open (Westford, since it is adjacent to corporate headquarters) and using it as a