Decisions in Operations Management
A Brief Description of the Company and its Product Markets
Sisamos Refrigeration Ltd is a Cyprus-based manufacturer of equipment and systems for food retailers. The company was established in 1968 and has grown to become a leader in designing, manufacturing, installing, and serving high-quality products for the food retailing industry. The corporation has over the years managed to meet economic as well as quality requirements for the customers (Sisamos Refrigeration, 2018). Its success is based on the capacity to use an integrated systems approach to customized solutions throughout the development lifecycle. Through its capable workforce, the company has been effective in serving the market using its commercial refrigerators and metal shelving systems. Currently, the company leads in the industry with a significant impact in the Middle East and Europe. The firm also exports its products to over 12 countries internationally. Therefore, as a global entity, the company faces competition from other firms in different countries and regions across the world.
Identification of the Company’s Product Competitive Priorities
Like any other company, Sisamos refrigeration Ltd regulates its operations effectively and efficiently as a reaction to the changes in its operating environment. The company operates in a highly competitive global market. The primary challenge for the organization is gaining and maintaining a competitive advantage. The factor defines the extent to which the company can enhance its operations over its rivals. For the company, various factors take priority when positioning its business compared to its competitors. The four strategic factors for Sisamos Refrigeration Ltd include quality, low cost, and fast delivery (Sisamos Refrigeration, 2018). The elements take priority when designing, developing, and marketing the products to appeal to a higher number of customers. The advantage depends on the strategic decision initiated by the management to prioritize the factors that are most appealing to customers.
For the Sisamos refrigeration Ltd, the quality of its products is the most critical factor in ensuring that it appeals to the global client while remaining highly competitive. For the last three decades of its operations, the performance of the company has been judged by the capacity to manufacture and introduce to the market quality and economical equipment. The management effectively and efficiently works on the customers’ requirements to meet their needs (Sisamos Refrigeration, 2018). The quality aspect is achieved by using the newest technology in the development of its refrigeration systems to serve customers and also reconcile the manufacturing process with the environment. The quality factor has allowed the company’s prices to remain low while serving its customers faster. Sisamos refrigeration Ltd serves a global clientele, which requires speedy processing of orders using the latest customer service systems.
Identification and Critical Analysis of the Company’s Positioning and Manufacturing Strategies
Positioning is a critical part of the company’s strategic planning to ensure that the products are well placed in the minds of consumers to improve the chances of effective marketing. The processing and manufacturing strategies of any firm take into account its strengths and weaknesses, the customers’ needs, as well as the position and market of the rivals. Positioning allows the management to identify the particular areas where they can outperform competitors (Wang, 2015). Sisamos Refrigeration Ltd has positioned itself effectively in the local and international market in the manufacturing of commercial refrigerators and metal shelving systems. The company capitalizes on the use of new refrigeration technology to improve the quality of its product and meet the needs and requirements of customers.
Sisamos Refrigeration Ltd has over the years managed to meet the high demands of the food and retail sector locally and internationally through an effective positioning strategy. The company has manufactured a wide range of refrigerators through practical research and development. The manufacturer serves the needs of the customers through taking control over the entire manufacturing process. The strong team of employees of Sisamos Refrigeration Ltd performs thorough research on the market needs and engages in the design, production, and marketing of the commercial refrigerators and metal shelving systems (Sisamos Refrigeration, 2018). Consequently, the company has control over the entire production cycle, preventing the dangers involved in outsourcing. Hence, the company has been reliably served the customers over the years. It has defended its position against the rivals and maintained a positive image among its local and global customers. The company has also positioned itself as an ideal provider of the services to the professional customer.
The company uses a flexible flow strategy with each product considered as an individual project. The company does not produce in large volumes for the customers. Instead, it uses a customization model where products are manufactured on demand and according to the customer’s preferences and requirements. The company positions itself in the market through customized items in a low volumes strategy. Therefore, customers are encouraged to order before the product is manufactured and delivered.
Product Life Cycle
Consumers buy millions of products each year from different companies. More importantly, all products have a life cycle. Figure 1 is a pictorial presentation of a lifecycle that products go through from the time of introduction into the market to their final stage.
(Figure 1: Product Life Cycle, Riley, 2018).
Products that have been in the market for a long time, eventually decline in popularity. Conversely, the demand for newer products increases once they are introduced into the market (Bakker, Wang, Huisman, & den Hollander, 2014). The management team has a responsibility of ensuring that products have a limited lifespan, hence invest in the development of new ones to maintain customers and attract potential clients. The strategy will also provide business growth and increased profitability. Sisamos refrigeration Ltd specializes in two main products, refrigerators, and metal shelving systems. The two products are at different levels in the product lifecycle.
Sisamos refrigerators are at the maturity stage. During this phase, the product has become well established in the market, while the manufacturer aims at maintaining the market share that since it might be hard to continue expanding (Bakker, Wang, Huisman, & den Hollander, 2014). The refrigerators have been in the market for three decades and have attracted an optimum number of local and international consumers. At this point, the company faces intense competition because other new companies are emerging in the market with competing products. Among the main competitors for Sisamos refrigeration Ltd include Alaska Refrigerators Industry Ltd and Alma Refrigerators Industry Ltd. The rivals have similar products, indicating that the company should continue differentiating its operations to maintain a competitive edge. During this stage, the manufacturer should endeavor to maintain the market already been established over the years.
Since the maturity stage is the most competitive period for Sisamos refrigerators, the management should be careful about any further investment. For example, it is unwise for the company to invest any additional resources towards market expansion. Hence, it might be the best time for the manufacturer to consider modifications or improvements of the product to maintain the current market (Bakker, Wang, Huisman, & den Hollander, 2014). However, the management should continue marketing the product to avoid losing the market to rivals. They should invest in newer technology that will improve the product since customers will be seeking better versions of refrigerator as opposed to a new model. Enhancing the features of the product will play an important role in differentiating it from what competitors are offering. Promotion should emphasize on product differentiation, and incentives should be provided to retain the high level of preference over competing products. The management should undertake more aggressive distribution initiatives to remain relevant in the market.
Sisamos refrigeration Ltd’s metal shelving systems are at the Growth Stage. The period is characterized by an increase in sales revenue as well as profitability. The company will be exploring new markets for the product during this phase. Consequently, it is possible to benefit from economies of scale in the manufacturing process (Bakker, Wang, Huisman, & den Hollander, 2014). The product will achieve an increase in the profit margin as well as the actual amount of profit because new customers are learning about the products and may begin to purchase. The management is investing more resources on promotional activities to maximize the potential of this stage. The quality of the product should be maintained as well as a few additional features to make it more appealing to the target customers.
Significant implications of this stage for Sisamos refrigeration Ltd are evident. The phrase is characterized by a considerable potential for the company to make more sales revenue and profits. Hence, it is critical for the company to invest considerably in advertising and promotional activities to increase the market for the metal shelving systems. While the manufacturer is well known for the refrigerators, a potential market for the metal shelving systems is still accessible. Therefore, the management should consider strategies that would improve the demand for the systems. Besides, the company should include more distribution channels for the product to reach more customers. It is evident that this stage is critical because the product is targeted to a global customer base.
The Flow Diagram of the Company’s Processes
Sustainability is one of the most critical quality requirements of Sisamos refrigeration Ltd. The management maintains that besides the customer requirements, the company seeks to ensure environmental protection as a way of upholding quality while remaining competitive in the local and global market. The diagram shows a basic flowchart of Sisamos refrigeration Ltd’s manufacturing procedures. The process begins with the acquisition of raw materials from reliable and environmentally conscious suppliers (Sisamos Refrigeration, 2018). The step that follows indicates in-house operations that include the design and manufacturing of the product. Although the company relies on internal processes throughout the production life cycle, some external approaches, such as information for research and development are involved. The final assembly also requires the integration of essential components (Jain, Lindskog, Andersson, & Johansson, 2013). Once the product reaches the final stage of assembly, it is prepared for shipping to different customers, depending on their needs and requirements. The company markets its products locally and internationally through various distribution channels, including direct sales to customers or through distributors based in different countries and regions that the company serves.
The Quality Strategy of the Company
One of the most critical quality considerations for Sisamos Refrigeration Ltd is environmental consciousness. The company manufactures energy efficient refrigerators and other products, which focus on reducing carbon footprint, and hence, appealing to environmentally-conscious customers. It is worth noting that due to the continuous effort of the company to offer high-quality products, the manufacturer received ISO9001:2000 accreditation in 2004. Since then, the firm has been operating according to the ISO quality standards and requirements. Sisamos Refrigeration Ltd has an internal quality policy that requires its product to be customized to the needs and specifications of the customers. Consequently, the company ensures that the high quality is maintained in the manufacturing of the product and its relationship with the customers. Hence, to meet the quality standards, Sisamos Refrigeration Ltd works with a team of qualified human resources to meet the quality standards and customer expectations (Sisamos Refrigeration, 2018). Besides, the management has implemented continuous quality improvement measures to ensure that employees are committed to providing excellent product and quality customer service. As part of the quality assurance process, the company uses a pre- and post-production testing of the product before it is delivered to the end user. As a result, the company is assured that the final product meets all the quality requirements. Hence, regardless of the intense competition, Sisamos Refrigeration Ltd has managed to maintain an edge over most of its global rivals.
Sisamos Refrigeration Ltd is a manufacturer of commercial refrigerators and metal shelving systems based in Cyprus. The company offers quality products and services to local and international client base. Notably, the company operates in a highly competitive market, necessitating the need to enhance the quality of its products and customer services to maintain a competitive advantage. Even though its refrigerators are at the maturity level of the product lifecycle, improvement in its technology and superior customer service, including customizing products to the needs of the customers has maintained its market share, revenue, and profitability. Hence, the company continues to compete effectively even with companies that have introduced new products into the market. However, the management should continue seeking more innovative opportunities to maintain market leadership, especially in Europe and the Middle East.