Strategic analysis of a manufacturing firm

Collins Manufacturing Company Limited has experienced a divergence from its traditional differentiation strategy which constitutes the need to review and revise its strategy to meet the changing needs of the market. Coupled with this is the impending loss of land due to the government bridge building project, scheduled to commence in the fall of 2005. If no action is taken, customer service levels will decline and the firm's reputation of premium quality service will be in jeopardy, putting the entire firm at risk of failure. This paper puts forth the recommended course of action to proceed with acquiring and expanding to the adjacent lot to the south of the current property. Expansion would include a new structure to house the highly differentiated service and customization division, leaving room in the main structure to operate a separate costbased, mass production division.