(upmarket) chip pans. These appliances were for consumers and small businesses for Electrochic was founded by...

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(upmarket) chip pans. These appliances were for consumers and small businesses for Electrochic was founded by Mr Bigshot in 1985 and initially manufactured top quality professional use. The company had acquired a good corporate image due to the top quality o products. Unfortunately, for Mr Bigshot, the chip pan market has gradually declined and entered its maturity stage and the advertising campaigns concerning the prevention of heart disease have not helped matters. Therefore, the company decided to expand its range of products and look for new market segments (new axes). In order to implement this new strategy they employed the services of a consultant specialized in strategy who drew the following conclusions: "your core competence is in small electrical domestic appliances." You could use your competences with a view to expanding your range in similar products as you could already use the experience you have acquired. So Electrochic has developed a range of irons and robot mixers. The synergies as far as production is concerned are obvious. In fact, the three product lines use the same machines and the same manpower. On the other hand, as far as the sales force is concerned, considerable efforts had to be undertaken in order to ensure the distribution of new products. As a matter of fact, the Electrochic chip pans are still sold via one distribution chain. Iron: and robot mixers need a larger market. Contracts were signed with other distributors with view to guaranteeing outlets for the new products. Thanks to investment in production the production process was improved and modernize The products are assembled with spare-parts bought from outside suppliers. Delivery to t customers is on a J-I-T basis. (upmarket) chip pans. These appliances were for consumers and small businesses for Electrochic was founded by Mr Bigshot in 1985 and initially manufactured top quality professional use. The company had acquired a good corporate image due to the top quality o products. Unfortunately, for Mr Bigshot, the chip pan market has gradually declined and entered its maturity stage and the advertising campaigns concerning the prevention of heart disease have not helped matters. Therefore, the company decided to expand its range of products and look for new market segments (new axes). In order to implement this new strategy they employed the services of a consultant specialized in strategy who drew the following conclusions: "your core competence is in small electrical domestic appliances." You could use your competences with a view to expanding your range in similar products as you could already use the experience you have acquired. So Electrochic has developed a range of irons and robot mixers. The synergies as far as production is concerned are obvious. In fact, the three product lines use the same machines and the same manpower. On the other hand, as far as the sales force is concerned, considerable efforts had to be undertaken in order to ensure the distribution of new products. As a matter of fact, the Electrochic chip pans are still sold via one distribution chain. Iron: and robot mixers need a larger market. Contracts were signed with other distributors with view to guaranteeing outlets for the new products. Thanks to investment in production the production process was improved and modernize The products are assembled with spare-parts bought from outside suppliers. Delivery to t customers is on a J-I-T basis.

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