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Q.9 What went wrong with the overall corporate strategy of OMC?

The main problem with OMC’s corporate strategy was that it failed to examine the current and

anticipated factors associated with customers and competitors (external environment) and the

firm itself (internal environment), envisioning a new or effective role for the firm in a creative

manner, and aligning policies, practices, and resources to realize that vision.

Erosion of its first mover advantages, shifts in industry core competencies and changes in

consumer preferences have depreciated the company's value proposition and deteriorated its

market share. Utilizing empirical data, this case illustrates the evolution of the commercial

vehicle industry in Turkey, changes in industry conditions, and competitive strategies employed

by the incumbent and its Japanese rivals in various life cycle stages. Isuzu and Mitsubishi came

up with new strategies to meet the unmet needs of customers. The product’s quality of OMC was

not up to the mark compared to the competitors. The technology utilized in Isuzu and Mitsubishi

was far better than OMC. Japanese vehicles had more esthetic appeal and were ergonomically

designed which made it easier to drive. They succeeded in achieving geographical coverage for

their sales, service and spare parts networks and also achieved sustainable market penetration.

Initially OMC was the sole provider of midi bus later when Isuzu also engineered its own midi

buses. Superior price-performance ratio of Isuzu’s midi buses was also better than OMC. It had

the product attributes such as higher speed, fast acceleration, and low maintenance which gave it

an edge over OMC. The two tier distribution system was also creating problems for OMC. Isuzu

and Mitsubishi also targeted the 3S networks from the onset. The core competencies of OMC

were being attacked.OMC had not prepared itself to face this type of competition. The warranty

provided by OMC also lagged behind the Japanese competitors. They failed to view Japanese

companies as their competitors initially. Timely decisions were not taken. The product

leadership, being market leader and first mover advantage all was lost by OMC.

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Q What are its implications when it comes to the 4ps of the Marketing Strategy?

To maximize the ROI the following changes can be made in the marketing mix:

Product strategy

1. The technology gap should have been eliminated at the early stages.

2. The product must be differentiated from its competitors to attract customers. This could

be done by providing more comfort, style or by improving quality.

Pricing Strategy

1. The prices must be competitive and fair to customers

Promotion Strategy

1. A comprehensive website must contain all the information related to our business.

2. Above the line advertisement methods should be used to reach the masses.

3. Targeted advertising should also be done by making a good positioning message.

Distribution Strategy

1. An excellent network of dealers should be ensured which provides with spare parts,

services and sales.

2. To increase the market share and to grow more quickly the end user must be given

information before and after sales by the distribution channel.

3. One tier system of OMC is more appropriate than the two tier system.