SDI Case Study

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Squirrel Defense, Inc. (SDI) was founded by Bo Haeberle, Glen Thomas and Ed Welsh in October 1998. The company manufactures and markets a high-end, squirrel resistant bird feeder called Solar Feeder. The solar feeder is a squirrel proof bird feeder that delivers a mild, non-lethal shock to a squirrel without delivering a shock to a bird using the feeder. It was a unique twist on typical bird feeders, because although it still resembled the usual bird feeder, it was used to house feed instead.

With any company, you need strong vision and mission statements to help consumers better understand your business and where you intend on being in the future. After reading the case, I found many issues that management must address in order to sustain a profitable business. The first problem that needs to be addressed is the development of a vision and objectives. A business plan is needed and management must find answers to questions like:

* What business are we in?

* What are our goals?

* What are our strengths, weaknesses, opportunities and threats (SWOT)?

* How are we different from the competition?

Strengths are something a company has that allows it to be dominant. SDI is strong in the fact that it was the first to produce a solar powered bird feeder, thus establishing a precedent. A weakness is something a company lacks, thus causing market disadvantage. Some major weaknesses of SDI are it lacks a strategic vision, has horrible distribution methods and has little capital to help establish market dominance. Once SDI has created a strategic direction, the company should go about the process of implementing and executing the plan. A strong strategy and vision would greatly help SDI move into the next generation ...

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...ing, distributing and marketing the feeders. Finally, if production costs decrease thanks to outsourcing, price drops should be instituted at wholesalers to help consumers less likely to purchase the feeder, become more interested.

Squirrel Defense, Inc. has been in operation for nearly six years now and has yet to establish themselves as a real market competitor. Sales have been slowed due to slow production/distribution methods and the fact that costs are exceeding sales. Many things need to be done quickly in order for SDI to survive in an ever growing market that could soon include many other solar bird feeders. As of right now, SDI is the chief producer of solar bird feeders, but advertising is weak, sales are weak, management is weak and much more. So much that gives me a headache. A need for a stable cash flow is critical to the company's success.

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