Fairmead Marine Case Solution
Fair Mead is a private limited company operating out of British Columbia, Alberta. It has been founded by Dr. William Fair (the money behind the enterprise) and Clinton Mead (the brains behind the whole operation). Fair Mead belongs to the recreational boat manufacturing industry that has shown growth from 2011 to 2015. The company is at the expansionary stage of the business cycle, and its primary product is a luxury item. Fair Mead manufactures both finished goods and customized products based on the customer’s preferences and instructions.
The company has capitalized on the cultural tradition of recreational boating in Canada, considered to be a favored pastime in the country. Fair Mead serves a specialty market consisting of high-income customers that desire to maintain a high social status, therefore demanding a superior quality, but at the same time, these clients happen to be cost-conscious and prefer affordability. Fair mead’s target market can be defined as a niche that has many risks associated with it. The company has also undertaken efforts to transform its product to be more environment-friendly, thus satisfying a significant trend that is currently emerging. Although the company’s sales depend on the boating season and the economic growth, it seems to have enjoyed a stable level of sales. Although the company’s primary sales are in British Columbia, it plans to expand to areas with heavy watercraft use and might represent potential sales.
Fair mead’s values indicate the broader vision with which it has been founded, that is, not to compromise on the superior quality as expected by the customers by adhering to their standards with integrity.
Fair mead’s value proposition comprises of high-end raw materials that do not just enhance the appearance of their boats but also ensures longevity and durability. The company heavily relies on its suppliers in order maintain this competitive advantage.
There are many weaknesses evident from the company’s operations that need to be overcome. Although not significant, these shortcomings can cause undermine any ambitions to grow and geographic regions to which it can expand its operations.
Mr. Fair’s constant interference in the production schedule is one of the major supply chain issues being faced by the company, delaying the delivery of products in time. Minor problems cause production to halt and leave little time for long-term planning.
Another major issue that had arisen was related to a relatively small scale supplier but had become a significant matter since, the supply chain manager, Morales had to take a tough decision as to whether to let go of him or take a risk by keeping him. Mr. Sharma was taking longer to fulfill the urgent orders as he had run into some problems of his own. The gap between the supply of Sharma’s materials and assembling of the products was causing a major issue for the company. Moreover, Mr. Sharma’s fittings were not according to the specifications that had been mentioned, having used lower quality materials instead of the one ordered, thus jeopardizing the company’s endeavor to produce the most superior quality products. Mr. Sharma faced an interesting dilemma that is; he could either provide the desired quality within his timeframe or supply on time but compromise on the quality. Miss Morales faces a challenge since; Sharma has the potential to grow into one of the major suppliers for the company which is why it would be a loss to let him go, while on the other hand continuing work with him with the same results could smear her reputation.
The main strength for Fair-MeadMarine is its management; the case study scenario mentions that both the owners are very enthusiastic and committed to the performance of the business. The senior management is very experienced in their industry and almost knows every critical success factors and how to implement them in the organization. Fair and Mead both know each other very well and understand the nature and capabilities very well.
Innovation in the products:
The products of Fair-Mead are very innovative;the products include latest technology which appeals to the customers to try their products.Apart from the advanced attributes the boats also include basic attributes as well which plays a vital role in the success of the organization. Now a days the survival of the organization is dependent on the incorporation of innovation in their products, especially in the growing economy where people have high disposable incomes, the individuals continuously want to experience products which have some new features and Fair-Mead Marine is successful in exploring this strength……………………………………
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