Sandvik Saws and Tools Industry Essay Example | Topics and Well Written Essays - 2000 words

Sandvik Saws and Tools Industry - Essay Example The essay is about the case of Sandvik saws and tools industry. Sandvik saws and tools I is a saws and other hand tools industry with a global presence. With its Headquarters in Stockholm, Sweden, the organization is known for its technical competence and maintenance of quality. The organization sells its products in more than 60 countries globally and has a strong presence in Europe. With its own centralized supply and distribution mechanism the organization is able to manage the supply of its products. However the management decided to upgrade the quality of the products by using a particular strategy called as ERGO strategy. The organization has spent a considerable amount of money for supply of technically advanced tools into the market. With this ERGO strategy the management hoped to gain a substantial share in the U.S market, which is not to be. The essay probes deeper into the problems or hindrances for the organization which are acting as limitations and suggests strategies for improvement of the same. The essay is about the case of Sandvik saws and tools industry. Sandvik saws and tools I is a saws and other hand tools industry with a global presence. ... 10. Brand value 11. Supply chain mechanism. 12. References Introduction to the case: The essay is about the case of Sandvik saws and tools industry. Sandvik saws and tools I is a saws and other hand tools industry with a global presence. With its Headquarters in Stockholm, Sweden, the organization is known for its technical competence and maintenance of quality. The organization sells its products in more than 60 countries globally and has a strong presence in Europe. With its own centralized supply and distribution mechanism the organization is able to manage the supply of its products. The industry into which Sandvik can be termed as a fragmented industry in which there is plenty of scope for new entrants to come in because of low entry barriers such as technology, or laws regulating its entry. Sandvik Saws and Tools chose ERGO or improvising ergonomics of the tools as a strategy for better positioning of its products in Europe and U.S. The task of implementing the strategy was given another Swedish based organization called as EDG, Ergonomi Design Gruppen, specialists in hand made tools design. According to Sandvik management the ERGO strategy should place the product streets ahead in the competition. However it is not to be. Despite very strong in technology and quality of products Sandvik was unable to maintain a substantial gain in market share in U.S. The essay tries to portray the various reasons for this lack luster performance of the organization and suggests suitable strategies to be applied in the subject area. Parameters chosen for analysis of the case: The various parameters I have chosen for analysis of the case are those which are relevant to any fragmented industry and also a maturing industry. They are such as 1.