Swisher Mower and Machine Company
1. Situation Analysis
Swisher Mower and machine is lawn mowers manufacturer, it was formed in 1945 by Max Swisher. The company manufactures mowers at its plants in Warrensburg, Missouri, but utilizes outside suppliers for some machine tool work and subassembly. Its facilities have an annual production capacity of 10,000 riding mower units on a single 40-hour-per-week shift. In 1996, unit volume for SMC riding mowers peaked at 10,000 units with sales of $2 million. In the early 1970s, sales volume began downward trends as a result of poor economic conditions in the geographic markets served by SMC. From 1975 to 1989, unit volume remained relatively constant. Sales improved in the 1990s, with an average unit volume of 4,250 riding mowers. In 1995, the company sold 4,200 riding mowers and recorded total company sales of $4.3 million. After 1975 industry sakes have gone up from 640,000 units to about 1,263,000 units, it’s a 97% increase when SMCs production was not increased significantly. Clearly, SMC’s performance indicates that it is lagging behind the US riding mowers and lawn tractors industry trend.
SMC produced three types of lawn mower units in early 1996. Its flagship product, the Ride King, is a three-wheel riding mower that has a zero turning radius. Developed by Max Swisher in the 1950s, this design is distinct from competitors’ in that the single steerable front wheel is also the drive unit. This feature allows the mower to be put in reverse without changing gears and by simply turning the steering wheel 180 degrees. The market offers three different type of riding mowers, these are: (1)the front-engine lawn tractors/garden tractors (2)the rear-engine riding mowers and (3)the mid-engine riding mowers(as Ride King), The front-engine model ranks first in popularity, as it is perceived as more powerful compared to others, followed by the rear-engine and mid-engine models. SMCs list price for the standard Ride...