Global Strategy And Operations

10 Pages 2434 Words

ndercut their competition’s price by $6,000 per unit without affecting the quality or performance of the system.
Pyramid has developed a three-part strategy. The first goal is to win back the customers that have been lost over the past two years. Pyramids sales group has identified those airlines and will be meeting with each one of them to outline new proposals that include cost reductions and extended warranty and service terms. The goal is to lock them into long-term agreements where Pyramid will provide them with new units but also service, repair and re-certify the after-market units. Currently, many of the airlines perform their own maintenance on the systems at a much higher shop rate or cost than Pyramid. Secondly, Pyramid will expand their marketing and presence to the lower priced airlines and the military based transport aircraft. This is an area that Pyramid has traditionally been left out of due the previous cost differential between their product and their competitors. Now that Pyramid’s pricing is competitive, they can compete in this new market. Once again, they will be offering long-term contracts that not only provide new units but also provide maintenance, repair, servicing and re-certification of the products. The third area of opportunity is a result of the joint venture with Siemens. Siemens currently has a large presence in South America, an area that is generally been overlooked by the aerospace industry. Globalization is mandating that these countries upgrade their infrastructure in order to stay competitive in today’s global markets. Siemens and Pyramid see this area as an opportunity for new business growth. As previously stated, Siemens has a presence established in many of these countries and has agreed to co-host a symposium in Brazil for all operators of Boeing aircraft in South and Central America. Next, human resource management and cultural factors will be discussed.
International human resour...