Managing the Transition from Maturity to Decline: Diamond Power Corporation :: essays research papers

Managing the Transition from maturity to Decline rhomb Power CorporationThis case study, prepared by Richard C. Scameborn, follows the DiamondPower Specialty Company from its humble beginnings in 1903 to its chastise in1991.The birth of Diamond came with the invention of the hand cranked soot cetacean. As the years and technology progressed, so did the Diamond soot blower.Along with this of import product, Diamond also added several other products to itsline, but n angiotensin-converting enzyme had the profitableness of the soot blower. Diamond had the securities industryto itself for a number of years, but finally two competitors sprang up tochallenge Diamond Copes-Vulcan and Bayer Company. Competition did non becomefierce until World War II, when the soot blower became a major commodity used bythe U.S. Navy to fresh boilers on board its ships. At this point, the sootblower industry became a dealers market and the need for strategy ( both(prenominal) corporal and business) became a necessity for growth and survival.Diamond Powers main mission at its beginning, to produce soot blowersthat would efficiently clean the inside of boiler as it continued working,basically stayed the same up until the addition of competition into the market.At this point, Diamond had to revise its mission to imply technologicaladvances to stay out front of it main competitor, Copes-Vulcan. With the passage oftime, production capability and technology were not enough. Diamond eventuallyhad to add foreign sales, guest service, and replacement part production toits original plan to keep ahead of the game. By the 1970s, the mission tosupply replacement move and service became one of Diamonds top priorities asit opened parts and service plants in spic-and-span Jersey, Georgia, Ohio, Texan, Colorado,North Dakota, California, and Washington.Diamond Powers goals over the years seem to stay sensibly congruent withits mission up until the early 1980s. Basically, Diamonds goals includedstaying on the restrict levels of technology, building a foreign market byexporting machines and parts and establishing joint-venture manufacturingcompanies overseas, establishing an extensive and profitable domesticaftermarket sanction system that included minifactories that supplied both partsand service, and to keep the upper hand on the soot blower market share.Diamond Powers parent corporation, McDermott, Inc, utilized severaldifferent corporate strategies to try to achieve Diamonds goal of a profitableand extensive aftermarket support system. However, some of the decisions made byMcDermott, Inc in regards to its replacement part voice caused more harm thangood. For example, when a small operator began to copy and sell Diamondreplacement parts at a lower approach than Diamond with great success, McDermott