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Daytun Inc. is a small office equipment company ($6 million in revenues) which focuses primarily on photocopier sales and service in the London, Ontario market. In the 10 years since its formation, Daytun's strategy of high quality products and high levels of service at moderate price has enabled them to outperform local operations of large multinationals such as Xerox and Canon, and they currently have the leading market share position in London. However, industry maturity, impending economic recession, and increasingly threatening moves by major competitors raise concerns about Daytun's ability to grow with their current product lines. It appears Daytun must either expand their product line and/or broaden their scope to new geographic markets in order to achieve their growth objectives. An accompanying industry note, North American Photocopier Industry - 1990 is available.
·To highlight the necessity of both achieving, and maintaining over time, a fit between a firm's strategy and its resource base, particularly when the competitive environment is undergoing rapid change. ·To illustrate the challenges of selecting an appropriate product/market focus as the environment changes over time. ·To illustrate the realities associated with local competition in what is increasingly a global industry.Used after North American Photocopier Industry - 1990, this case brings the level of analysis back down to the nature of competition at the individual, local market level.