Athens Glass Works Harvard Case Solution & Analysis

Athens Glass Works  Case Solution

Internal Analysis

Effective Supply Chain

Athens Glass Works has developed a strong supply chain using its own transportation. Athens has the facility to make the delivery for the time because it has proceeded with the company owned vehicles. Thus, an efficient supply chain activity has been established with the transportation services. This also lowers the cost of shipping of the company. Thus, company gets profit through the reduction in transportation cost.

Reliable Services

Athens Glass Works also incorporated quality services along reliable and fastest delivery services. It also provides services for the short notice without any extra charges.

Employees of the organization

Employees of Athens Glass Works were acknowledging due to their responsible and customer-oriented behaviors. Thus, it is very useful for the organization that its customers are very diligent at their work.

High Price Strategy

Athens increased its price in order to increase its profit thus; it was the weak point of the organization that it has high prices rather than its competitors in the market. With the increase in the prices of the glass customers of Athens, Glass Works have moved towards cheaper price products in order to maintain their profitability. Hence, sales of the Athens Glass Works got lowered, and it has got a decline in its market share too.

External Analysis

Reducing Production Cost

Athens Glass Works has the possible ways to lower its costs because it has efficiency in its supply chain with which it can easily maintain its profit. Furthermore, it has the option to decrease the prices of the product so that the wholesalers, retailers, and the other customers will be attracted.

Risk of Competitors

The company has got a decline due to increase in its prices. It was expected that the other companies will also increase their prices, but they did not increase their prices. Hence, customers of Athens Glass Works switched to its peers. The company hence, had to suffer a decline in its sales and the market share too.

 Decision Tree with different options and EMV for each option

Athens Glass Works has lost its customers due to increasing the price of the product. It has increased its price in order to raise its profit margin. Contrarily it appeared to the adverse effects of the increase in prices. It was the market leaders, and it has also lost its market shares. Hence, it has further opportunities to raise its sales there are the two options that can help it to get its customers back.

The diagram above represents significant options that Athens Glass Works would have to use in order to increase its sales. . It has the option that it can create awareness of the company’s product. It has another option to focus on its total and decrease the price of the product.

Marketing Strategies

Athens Glass Works’ quality and reliability are the two main strengths with which it became the market leader. Thus, it can advertise its efficiencies. Athens Glass Works would also use the strategic sale options. It can accommodate its customers with the discount in the glass prices. Its customers will come through the sales that it has maintained its quality and still is a reliable brand.................

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