Operation Estrategy

Video Case Study

|Strategy at Regal Marine |

| Regal Marine, one of the U.S.’s 10 largest power-boat manufacturers, achieves its mission ―providing luxury performance boats |

|to customers worldwide―using the strategy of differentiation. It differentiates its products through constant innovation, unique |

|features, and high quality. Increasing sales at the Orlando, Florida, family-owned firm suggest that the strategy is working. |

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|As a quality boat manufacturer, Regal Marine starts with continuous innovation, as reflected in computer-aided design (CAD), |

|high-quality molds, and close tolerances that are controlled through both defect charts and rigorous visual inspection. In-hose |

|quality is not enough, however. Because a product is only as good as the parts put into it, Regal has established close ties with|

|a large number of its suppliers to ensure both flexibility and perfect parts. With the help of these suppliers, Regal can |

|profitably produce a product line of 22 boats, ranging from the $14.000 three-passenger Rush to the $500.000 42 foot Commodore |

|Yacht. |

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|“We build boats”, says VP Tim Kuck, “but we’re really in the ‘fun’ business. Our competition includes not only 300 other boat, |

|canoe, and yacht manufacturers in our $17 billion industry, but home theatres, the Internet, and all kinds of alternative family|

|entertainment.” Fortunately for Regal, with the strong economy and the repeal of the boat luxury tax on its side,...