Omega Craft Case Study Example | Topics and Well Written Essays - 1000 words - 1

Omega Craft - Case Study Example In my opinion the biggest reason for the problems that the company is facing with its kit car division is the lack of research that went into the planning stages of the product development. Manufacturing fiberglass hulls for boats and making fiberglass parts for a car are two entirely different things and Omega Craft made the mistake that many bigger names had made; they didn’t devise a proper product development strategy and did not test market their fiberglass car components. As a result, the lack of research that went into their car components is evident in the low quality of these products. The boats that the company has been manufacturing have been perfected over the years but the kit car components should have been tested sufficiently before their production was started. A very good option for Omega craft would be to employ vertical dis-integration and look to form a virtual corporation. It would result in a number of benefits for the company. Outsourcing parts of the kit car would mean that the company could be able to provide better products at a better price. Locating manufacturers whose specialty is this particular line of products and working with them will result in improving the final product that the company intends to sell to its customer. The company can carry out extensive research and upon deciding the kind of product that they want, they can get it manufactured from another small scale manufacturer, so that it can maximize their economies by specializing. Given that Omega Craft sets rigorous standard production specifications, this arrangement can give their Kit car parts the needed touch of expertise. The costs will also be certainly less if Omega Craft only looks to manage the supply network, market these kit car components and to uptake sales and post sales services while getting the actual products manufactured by someone else. However this arrangement can be problematic as well.