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5 Questions of Nypro

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(1) What is Nypro's competitive advantage(s)?

(2) How has Nypro crafted its strategy? What is it?

(3) What would you recommend Lankton do at the end of the case?

(4) How is the concept of knowledge management demonstrated at Nypro?

(5) How would you compare de facto strategy with the strategic planning process? Use Nypro in your analysis.

Using the case: Managing Innovation at Nypro, Inc (B)

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(1) What is Nypro's competitive advantage(s)?

Nypro's competitive advantage is that it has developed a new Novaplast molding machine. The machine is unique in the sense that it can produce economically a wide variety of products in smaller volumes than other machines Nypro had produced in the past. Competitive advantage occurs when Nypro acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. Currently, Nypro has developed Novaplast and this has the attribute of being able to produce a wide variety of products in small volumes per part.

(2) How has Nypro crafted its strategy? What is it?

Nypro has crafted its strategy by combining alternative 2 and alternative 3. Alternative 2 is to install two or three Novaplast machines in each plant and putting a large number of engineers and salespeople to work on the job. Whereas the third alternative is that to assign one plant to build a business around Novaplast and then, learning from that plant's experience, and roll out across the company. Nypro has combined both these strategies and has developed a strategy by which he made the machine available for lease by individual plants from its corporate headquarters. This had two advantages. The plants would not have to bear depreciation costs and second the plants would not have to ...

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