Halloran metals company. This company was among the largest two independent regional service centers in the northeast US having seven locations in deferent states like New England, New York, and Pennsylvania. It is believed that in the period of 36 years of it foundation, the company had grown to sales of $170 million and an operating profit of $6 million.
This company was privately owned with a network of metal service centers across the northern United States through buying metals like primary steel and aluminum in plenty or bulky form. This company has its president known as Warren Hansen and the vice president known as Jim Rochleau who came up with the idea of reexamination of the strategy that Halloran the company which had been pursued or using for more than two decades in is presence. It was due to the fact that, this company had faced a financial results for 2001 an exhibit 1 which showed a profit decline of about 70% from the previous year.
They had to come up with a strategy of trying to combine and incorporate two primary principles as their main idea through to broad base of customers and establishing market position through specialization as their main strategy. As Jim put it clear that “we are in business to give our customers what they want”. But their emphasis was based on a broad customer as their key element in its strategy due to the fact that the volume business in New England market is more prices competitive and attracts more of the large local and regional competition in the world market that is why it offered over ten thousand line items in all. This stock keeping units was twice the average for service centers in New England and high service content that changed the company’s higher prices than the industry norm, mostly changed Halloran to live up to its service expected goals that were put across to be aimed at. This convinced the company that its service played a important role in the developing and maintaining customer loyalty and their preferences.
Using the porter’ 5 forces of analysis which includes; threat of the entrants, Threat of substitute products or services, Bargaining power of customers (buyers),Bargaining power of suppliers, and Intensity of competitive rivalry can be used to critically analyze the weakness and strength of the company.
