Case Study

Merloni Elettrodomestici UK: What platform for growth?

23 pages
November 2003
Reference: IMD-6-0260

In December 2001, Merloni Elettrodomestici purchased GDA Ltd in order to consolidate itself as Europe’s third largest producer in the white goods market. Merloni, who had been sourcing its tumble dryer production from competitors, aimed at switching its sourcing to GDA’s old and not highly efficient plant. The case focuses on the manufacturing challenges faced by Bob Vernon, Merloni UK industrial director, in implementing Merloni’s new tumble dryer development strategy. After having analyzed the pros and cons of each option, participants are asked to recommend whether Vernon should continue to develop its two products lines independently or as a single common platform. The case is supplemented with a video of Knut Karlsen, Project Director at Merloni, explaining to an IMD MBA class the manufacturing route chosen by Merloni UK.

Keywords
Product Development, Manufacturing Strategy, Operations Management, Platform, Production Management
Settings
United Kingdom
Consumer Goods, Home Appliances
April 2003
Type
Field Research
Copyright
© 2003
Available Languages
English
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