Doman Synthetic Fibres Plc

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Date Submitted: 09/27/2012 08:04 AM

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1. Applying the SAFe criteria and techniques of evaluation, we find the following to be apt to Doman Synthetic Fibre’s success.


The development of Crylon as a new product was a key opportunity as Doman Synthetic Fibres had predominantly relied on the Britlene as the main income source for a number of years. Further, Britlene’s patent protection is coming to an end and this became a big constraint to the company’s future. According to Johnson, G., Whittington, R. and Scholes, K (2011: 721), sales units of Britlene has indicated slight increase between 2006 and 2008 but the net income before tax was however declining, indicating that a strategic change was needed to turn around the company due to higher increase in costs of production. Johnson et al (2011: 364) indicated strategic options for suitability and the table below shows some examples of how Doman Synthetic Fibres applied those options.

Concept Doman’s application Development Strategy Result

PESTEL • Patent protection about to expire

• Crylon has lower production costs • Develop new product

• Increase profitability

Porters 5 Forces • Threat of alternate supplier producing Britlene after Patent expires

• Competitive rivalry • New Product will maintain future sales

• Using the same plant for both products will decrease production overheads

Strategic Capabilities • Efficient use of production facility

• Production plants in excellent order • Well maintained cost of sales and consistent units output

• Confined working week to week-days with 3 shifts-cost saving

Value Chain • Location of plants • Close proximity to Supplier and main customers


Doman Synthetic Fibres considered several financial models to mitigate risk. New product launch prices were uncertain due to the industrial market being a great unknown. This had to be compensated by deciding whether to open new plants or modify the existing plants to produce Crylon. With focus on an optimised value network,...