1. Operations Strategy for Competitive Advantage Chapter 2

2. What is Regal Marine? Regal Marine was established in 1967 as a family owned business (Florida). Regal Marine was established in 1967 as a family owned business (Florida). One of the ten most important boat manufacturers One of the ten most important boat manufacturers Currently, they sell new and used luxury boats Currently, they sell new and used luxury boats Customers can shop online Customers can shop online Company provides many services: Company provides many services: - mechanical service - mechanical service - boat fit out - boat fit out - sounder and electronic installation - sounder and electronic installation - trailer service - trailer service

3. Regal Marine - Mission IN GENERAL: IN GENERAL: As a service company, their mission is to satisfy their customers’ immediate needs and wants by providing them with a wide variety of goods and services at multiple locations. As a service company, their mission is to satisfy their customers’ immediate needs and wants by providing them with a wide variety of goods and services at multiple locations.

4. Regal Marine - Mission To provide: To provide: –Quality and reliability. –Value : distinctable feactures that add value to their products. Innovations. –Satisfaction to costumers. Good and quick service. To be profitable but continue being a honest company with character. To be profitable but continue being a honest company with character.

5. Regal Marine - Strategy How mission will be achieved. How mission will be achieved. They use the strategy of differentiation They use the strategy of differentiation To accomplish the mission they: To accomplish the mission they: – Reduce cycle times – Improve processes – Use alternative products – Constantly innovate – Include unique features –Produce High quality goods

6. Regal Marine - Strategy Broad product line : 22 boat models. Broad product line : 22 boat models. Best in class, distinctive products. Best in class, distinctive products. Computer-aided design, high quality molds, close tolerances, charts and rigorous visual inspections Computer-aided design, high quality molds, close tolerances, charts and rigorous visual inspections Large number of suppliers to ensure flexibility and perfect parts Large number of suppliers to ensure flexibility and perfect parts To must compete with, not only other boat manufacturers, but also with other ‘fun’ providers/bussinesses. Associating boats and sailing with entertaining. To must compete with, not only other boat manufacturers, but also with other ‘fun’ providers/bussinesses. Associating boats and sailing with entertaining.

7. Regal Marine – Product Design Factors that affect the Product Design in Regal Marine: Factors that affect the Product Design in Regal Marine: – Customer tastes – Trends – Competitive products – Material Innovations – Government Regulation – Taxes

8. Regal Marine – Product Design The process starts with coming up with new ideas : Workteam The process starts with coming up with new ideas : Workteam “New Product Management Team” where engineers, manufacturers, salesmen, marketing experts and more, work together. Always taking into account opportunities and fluctuations in the marketplace (Flexible) and ensuring that environmentally-friendly products are made. Always taking into account opportunities and fluctuations in the marketplace (Flexible) and ensuring that environmentally-friendly products are made. Use of a fully functional, real scale boat for tests before comercialising the product. Use of a fully functional, real scale boat for tests before comercialising the product.

9. Regal Marine – Product Design CAD design -> Molds (handmade) CAD design -> Molds (handmade) Quick product development : by getting the suppliers on board early and urging them to participate at the design stage Quick product development : by getting the suppliers on board early and urging them to participate at the design stage 3 year life cycle needs quick response 3 year life cycle needs quick response Existing boat designs are always evolving in Regal Marine. Existing boat designs are always evolving in Regal Marine.

10. Regal Marine – Supply-Chain Management The supply-chain management is important to Regal because: The supply-chain management is important to Regal because: – Cost Control : Reduce or even eliminate raw materials’ inventory – On-time deliveries – Reduce cost and increase contribution margins. Without reducing value and quality. Importance of dealers/distributors not only in USA but in every country they sell. First class distributors are crucial for a good representation of the company (public image) and to assure high quality. Importance of dealers/distributors not only in USA but in every country they sell. First class distributors are crucial for a good representation of the company (public image) and to assure high quality.

11. Regal Marine – Supply-Chain Management Techniques: Techniques: – Partnering : Commitment with the key suppliers to achieve realibility of products, cost.. Continuous improvement process Continuous improvement process – Participation in ABA (American Boat Association) with other boat manufacturers : Higher qualities/volume levels Higher qualities/volume levels