Aia Case Study

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Allegheny Industrial Associates (AIA) began in 1991 as a privately held company. Founded by an entrepreneur in Coraopolis, Pennsylvania, just outside of the Pittsburgh International Airport, AIA was part of an industrial packaging company for seven years. AIA was started in order to bring a new load securement concept to the shipping industry, primarily in rolled paper. The product, a thin rubber matting used as a friction mat to keep cargo from moving during transit, was an innovative concept and was trademarked ‘TransMat’.

Historically, shippers used wood and nails to secure rolled and palletized paper in large truckload trailers that move across the highways and on flat cars of trains. The wood and nail securement system was time consuming …show more content…

There were several factors that precipitated the sale. First, the paper industry was shrinking due to plant closures, mergers and imports. Additionally, through the previous eighteen years and the concentration of sales within the paper industry, AIA was not successful in finding and developing a new market for TransMat. Additionally, a new and aggressive competitor entered the market. It was apparent that the product had reached maturity in the paper industry and future customer wins would be predominantly price driven. Selling AIA during a strong performance period appeared sound and ownership by a successful corporation offered new opportunities for the TransMat line and potentially improved benefits and advancements for current employees. The new owner, Greif Inc., made AIA part of the packaging accessories, load securement business (Tascarella, 2009). Although Allegheny was allowed to operate independently, it received sales representation from the sales representatives responsible for growing the corrugated manufacturing plants located in Hazleton, Pennsylvania, Macon, Georgia, Posen, Illinois, Stockton, California, and Woodland, Washington. The new management team was focused on finding new ways to grow …show more content…

The organization, renamed Signode Industrial Group, employs 7,000 people, is comprised of 88 manufacturing facilities located throughout six continents, and is focused on manufacturing and providing products that package, secure, and protect goods during manufacturing, shipping and warehousing (The Carlyle Group, 2014). Although an emphasis is placed on growing margins, generating new revenue is paramount. Under the new management team, sales improvement is a key initiative (Signode Industrial Group, 2014). The change in philosophy has enabled AIA to be more aggressive in pricing and in confronting and combating

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