Husky Strategy

Case: Husky

In the first ten years of its turning to performing machine jobs, Husky established a reputation as a high-quality maker of plastic molds. After introducing its first injection molding machine, the speed and quality of subsequent models attracted customers in spite that sales of the first machine were slow. Then Husky expanded to Europe and Japan. Unlike rivals, the company offered fully integrated system of thin wall mold, machine, and product-handling equipment. Husky introduced machines and molds to make PET preforms as soft drink makers shifted to plastic bottles. With a quick product innovation, Husky established itself as the leading firm in the preform niche. Husky’s strategy is differentiation, innovation, high quality and smart move in the market.

Husky sold a line of premium-priced, premium-quality equipment because it provided value-added service. Just as Husky’s systems were known for their speed, ruggedness, resin utilization and durability, A Husky thin wall system could act much more efficient than a competitor’s system. Similarly, a Husky system might make a set of PET performs for soda bottles with a cycle time shorter than others.

The company tracked the production methods and products of its rivals closely, but had not analyzed their costs in detail. What’s more, the soaring price of PET resin increased the company’s costs as the makers of PET resin underestimated the demand. Husky also faced the crisis of rivals launching new products in its core market segment.

Therefore, Husky needed to find a way not only to lower the costs, but also to reposition itself in the changing market.