Acc Connector Case

In 1991, the US Connector Industry was in a vulnerable situation. With more than 900 suppliers burdened with capacities and reduced demands, the price competition intensified. In such powerless times, the Sunnyvale plant of the American Connector Company in USA was facing the threat of competing against a new plant to be set by DJC Corporation, a company well established in Japan. This write-up addresses the situation between the two companies and provides justification and recommendations as to what plan of action ACC should implement in their operational, strategic and financial management in order to compete.

Using cost indices, 'Exhibit 1' displays the cost variation between the new prospective plant of DJC Corporation in the USA and the existing one in...