Lance Elhami

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• Lance Elhami
• Samantha Delagardelle

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Background

• A forward looking, technologically contemporary
  company, accustomed to solving unusual problems
  as well as providing everyday needs.
• Founded 1976
• Vertically Integrated in 1980
• Today 5 plants, a wide variety of products, a
  few very high profile customers

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The Twist

• AFE Industries has seen itself as stuck in the
  middle at least twice since they began
  operation. With the introduction of barcodes and
  RFID, which were both high priced at the
  beginning of their introduction, how was AFE able
  to succeed in their industry when firms stuck in
  the middle are expected to fail?

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Answer ?

• Strategic planning....
• With the help of our friend WalMart

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SWOT

• Strengths-
• employees
• Weaknesses-
• advertising and marketing campaign, magazines
• reliance on existing customers rather than
  acquisition of new ones
• Opportunities-
• the bar code
• RFID
• China for outsourcing and import of raw materials
  
• Threats-
• competitors in the printing industry
• Atlas Tag Label
• Moore-Wallace Business Forms
• Coastwide Tag Label

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Competitive Advantage

• The 4 Building Blocks of CA in relation to AFE
• Efficiency-
• Check list
• Quality- Quality brings satisfaction and
  satisfaction is what brings customers back
  -Farid Elhami
• Innovation-
• First Movers in Barcoding and RFID
• Customer Responsiveness-
• Follow up calls to ensure quality and
  satisfaction

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Problems with AFE

• Increased prices of materials
• Waste of Plates

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General Lessons

• Use of SWOT Analysis to determine opportunities
  and possibilities for innovative ideas.
• Successful and innovative technological
  standards can lead to a lockout. Those promoting
  on alternative standards are unable to compete.

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It Reminds Me Of.

• Cola Wars Early Movers
• Ability to test out new production and
  distribution lines.
• Ability to establish economies of scale.

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Questions ??