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Wilsonart Vs America

Satisfactory Essays

Arborite’s current competitors are Formica and WilsonArt, mostly concentrating in the United States market. Formica operated several facilities overseas and in North America. Formica was highly focused on making investments to automate several activities which proved to be a competitive advantage for them. The company was able to cut costs and utilization rates increased to about 70% in the U.S. plants (McGahan, 2006, p.10). Since most of the systems were almost fully automated, Formica required less staffing and could invest more into developing a sophisticated marketing and sales strategy. Formica built up their customer relationships by having representatives call architects, designers, OEM’s, distributors, and dealers to solicit feedback and preferences for “fashionable, innovated HPL…” (McGahan, 2006, p.2). The company was also able to develop a modernized system that transmitted information on customers’ preferences. The …show more content…

(McGahan, 2006, p.11) Unlike Formica, WilsonArt was not known for the “fashion” or “innovation” of its HPL but had a huge advantage over its competition with its policy of quick deliveries. WilsonArt had a policy of shipping stock items within 3 days and non-stock items within 10 days of receipt of an order. (McGahan,2006, p.12). In addition, WilsonArt has its own fleet of trucks, making WilsonArt’s strategy to compete on shipping speed one of a kind, compared to its competitors. Furthermore, WilsonArt had a strategy of having “exclusive distributorships.” This meant that each of WilsonArt’s distributors received a commitment that the firm would not sell to any other distributor or dealer in the local area. (McGahan, 2006, p.11) WilsonArt’s strategy of having distributors sign a contract with them gave WilsonArt a competitive advantage over the competition, which did not have a policy of exclusive

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