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Strategy (BEMM119) Group Report
Drew Reynard – Xin Wang – Xiaoyao Zhu – Archit Garg
– Janevisa Pattarapornpisit – Siyu Chen
Group 28
Abstract
This report is an executive summary of a case study assignment looking into the current and
future strategies of UK-based engineered textiles manufacturer AmSafe. For any further detail
required please see the wiki page for all of the collated information and references used.
AmSafeBridport is the world’s leading provider of safety restraint products and is a dominant force in
three separate markets, the markets for cargo, airframes and as of recently the market for Tarian (an
RPG defence net aimed at military markets). AmSafe have recently been acquired by American
private-equity firm Transdigm and the new owners have asked AmSafe to focus on three key areas;
cost reductions, price increases and product development. Therefore these must be the aims for any
future strategy ensuring AmSafe maintain their position as global market leader. These strategies must
balance financial objectives with strategic objectives, for AmSafe how these goals can be measured
can be seen in the balanced scorecard in appendix 1.
Scene-Setting and Environmental/Internal Analysis
External Analysis
We started our analysis by looking at AmSafe’s external environment. Figure 1 shows the various
impacting factors for AmSafe. These signify it is operating in a fast-moving environment. These
dynamics help us to look forward in regards to what drivers will change the industry in the near future.
The wide variety of different drivers also indicates the difficulty AmSafe faces in moulding a coherent
strategy going forward that embraces market uncertainties.
Figure 1: Amsafe forces and drivers
Taking these drivers, we concluded several basic trends. Firstly, there is an increasing demand for
reduced-weight products. Secondly, there is increasing concern about the risk cargo transporting brings.
Also, the aviation industry is embracing a deregulation trend leading to growth in emerging marketsbut
also increasing costs.
Based on the analysis, we built four scenarios centredon two key uncertainties that are economic
condition and the potential of war or terrorist attack (see figure 2). The scope of the scenario is to
forecast the effects to the future in 2019, at the global level and covering the industry of commercial
aviation and defence business.
Figure 2: AmSafe Scenario Planning
‘Struggle to maintain the position’ results in an increased demand in the defence industry but a
decreased demand in aviation industry. In this situation, AmSafe could continue its innovation strategy
to develop more products in defence industry and change its product portfolio. ‘Struggle to survive’ sees
both commercial aviation and defence industry suffer from low demand, making AmSafe struggle to
survive. In this case, AmSafe could try to increase profit margin by cutting down costs and increase
efficiency.‘Aviation booming’ describes a future with demand increases in aviation industry due to the
economy booming while defence industry doesn’t change much. Amsafe can best benefit it by carrying
out a best-cost strategy, and expanding their markets. ‘Both market booming’ sees both industries
striving AmSafe can take advantage of this by carrying out innovation, diversification, market
penetration and market development. However, this situation has very low possibility of happening, as
the economy tends to contract when war or terrorist attacks occurs.
Figure 3: Industry Life Cycles
Key: Blue = Tarian (defence)
Red = Airframe
Green = Cargo
AmSafe’s three markets are at different stages in the industry life-cycle (shown above), this suggests
that since the defence sector is in the growth stage that future strategies should be focussed on filling
this expanding demand, be it through new product innovation or blue ocean strategies to satisfy new
demands.
Internal analysis
Resources and Capabilities
Appendix 2 identifies the key resources of AmSafe. In isolation resources do not provide a company
with a competitive advantage. Figure 4 looks at the capabilities of AmSafe and puts them into
hierarchical order according to the scope of knowledge that they integrate.
Figure 4: AmSafe Hierarchical Capabilities
This table shows AmSafe's hierarchical capabilities by scope of knowledge.
Considering the dynamic and changeable environment Amsafe operates in, it’s not enough to only
analyse the capability in a predictable and stable environment. Therefore, consideration is given to
dynamic capabilities. Figure 5 identifies Amsafe’s dynamic capabilities that build or grow within the
firm and cannot be purchased.
Figure 5: AmSafe’s Dynamic Capabilities


AmSafe’sforward-thinking strategies have led them to a dynamic capability rich position. They have
strong dynamic capabilities in the management process that helps them to adapt to uncertainties and
unexpected events
A traditional VRIN framework is used to analyse the resources and capabilities of Amsafe.
Figure 6: AmSafe VRIN Framework
The chart illustrates clearly that AmSafe is strong in the innovation design, capabilities and intellectual
assets from traditional analysis. They can provide developed products that fit for the advanced aircraft,
their advanced lightweight cargo pallets are the industry leading products. Because of the good quality
and timely innovation, they also acquired a good reputation and stable customer. However, due to the
fast moving competition AmSafe needs to shorten the time from idea to product in order to stay ahead
of competitors.
Another tool, the value chain, is introduced in appendix 3.The main channels through which AmSafe
adds value are its expertise on the manufacturing and product development side. Its vast experience and
knowledge of the market help it to develop the very best products that outcompete rivals through sheer
quality. This can be seen through its development and rapid success of its' latest product Tarian.
AmSafe's ability to further its current products whilst moving into new markets not only generate profit
but also adds value to customers as products were not previously available in some of these markets.
This value added arises through AmSafe working closely with current and prospective customers to
develop better products and solve any problems they have. Combining all of the above strategies gives
us the TOWS matrix below which shows how AmSafe’s environment influences their strategy.
Figure 7: TOWS analysis for AmSafe
TOWS Strengths
1.Product innovation capabilities
2.Skilled engineers
3.Strong brand and reputation
4.Proven capabilities in
improving production processes
5.Good relationship with
suppliers+distributors
6.Good quality products
Weaknesses
1.Centralised management
structure (slow reaction)
2.Product to market lag time
Opportunities
1.The growth of aviation industry
in emerging countries
2.Customer demand for reduced-
weight products increasing
3.Deregulation of aviation industry
OS
1.Market development (emerging
markets, new markets)
2.Blue ocean strategy
OT
1.Use large-scale production
units to exploit economies of
scale
2.Reduce lag time by
increasing innovation
investment
Threats
1.The cyclical nature of
commercial aviation industry
2.Defence sector regulation
3.Increasing labour costs (China)
4.Credit risk and customer default
5.(low-cost)Competitors emerging
particularly in emerging markets
6.Foreign exchange movement
TS
1.Innovation strategy - product
development strategy
2.Arbitrage - global supply chain
3.Best-cost strategy - maintain
quality and innovation when
control the cost
WT
1.Set up a financial department
to deal with foreign exchange
movement
2.Decentralise to give
subsidiaries more autonomy to
operate
Key Strategies Identified
Business level strategy
AmSafe has recently pursued several different business level strategies as illustrated below:
Best-Cost Provider – AmSafe target 3% year on year cost reductions. This cost-minimising strategy is
combined with a product differentiation strategy with the aim of maximising customer satisfaction.
AmSafe has done this by cutting costs in its’ broad market (commercial aviation) in order to appeal to a
niche market in the form of it’s Tarian product (Thompson et al 2012, p167). Maintaining this prof itable
middle-ground is vital for future strategy implementation.
Blue Ocean strategy - AmSafe has also sought to create uncontested markets through investment in its
product development and R&D. An example of this is its' thriving Tarian business which now
represents 20% of AmSafe's profits even though it was only established several years ago. Although this
market is now contested through competitors such as Qinetiq, AmSafe still exploits a first mover
advantage and this side of the business is highly profitable and expanding quickly.
Figure 8Tarian Strategy Canvas
This Strategy canvas visually represents the areas of competition that AmSafe is outperforming its'
competitors such as Qinetiq in and those where it is being outcompeted. It can clearly be seen that this
represents a blue ocean strategy, as AmSafe is able to offer far more than competitors especially in
terms of how the product is reusable and lightweight.
AmSafe’s international strategy- Another of AmSafe's recent strategies has been to expand the
outreach of its' operations into America, Sri Lanka, China to complement its corporate headquarters in
Bridport. This strategy helps to locate AmSafe closer to both its' customers and its' suppliers (e.g. many
of AmSafe's suppliers are located close to its China base). This strategy has the benefit of AmSafe being
able maintain and establish relationships more easily both with suppliers and customers. By being
located in China this also gives AmSafe the ability to source new suppliers and better manage their
supply chain, as production in China has now ceased this is the sole aim of the China unit.
In this version of the BCG diamond model AmSafe's current position is shown by the red dots/lines.
By looking at AmSafe's overall position in the diagram above we can see where AmSafe performs
strong and weak, as a perfect international strategy would involve moving to the extremities on each
access to have the shape of the dotted diamond line. This can act as a guide for future strategies.
AmSafe has the ability in the future to explore new markets and expand current product ranges.
Especially since its' recent acquisition by Transdigm, AmSafe has the opportunity to work with other
companies that come under the 'Transdigm umbrella'. Such as the Naval supply company Ian Kentfield
mentioned in the lecture. These connections and relationships give AmSafe the ability to find new
markets and make new products.
Three A's model - AmSafe has previously operated an arbitrage international strategy. Whereby, it
exploits global differences (for example low cost labour in Sri Lanka) to reduce costs and enhance
performance. The main strategy through which this arbitrage is achieved is via offshoring. Where
AmSafe moves parts of it's production to the areas where cost can be minimized and differences
exploited. This enables them to 'Buy low in one market and sell high in another' successfully arbitraging
the market.
Figure 9: Signals AmSafe’s advantages from international strategy
Innovation strategy
Currently, Amsafe is highly efficient in terms of innovation management. They seem to respond quickly
to the rapidly changing environment to build their competitive advantage which can be seen from many
awards they had received in recent years such as the queen’s award for developing exceptional
performance in Tarian products (Amsafe.com, 2013). To emphasize in the quality of the products, they
also have the contract with the government such as the MOD in the UK. It can be said that the ir product
innovation has a high quality standard as they have a strong customers and reputations in both defence
and aviation industry. According to Nagji and Tuff (2012), the enterprise that concurrently has a
substantial innovation management may seen in the clear vision of investing in three levels of aspiration
and trying to manage the balance among these factors. This ratio can be seen as 70% for core, 20% for
adjacent and 10% for transformational. Amsafe has almost met this criteria by developing their products
to follow this ratio. Thus, this leads to the good innovation management in the company. For instance,
70% of typical research and development in lightweight pallet nets as the core to optimize the existing
products, around 20% from fire contain covers as the adjacent in the new to the company business and
nearly 10% of transformational Tarian products as to invent products that market do not have and their
revenue has turned back well as seen from the financial data. The aim of the company is trying to
improve their talent, integration, funding and pipeline management to improve their sustainable
innovative development.
Figure 10: Innovation Strategy
Figure 11: Network level Strategy
AmSafe has built strategic alliances with many of its stakeholders. AmSafe already allied with some
stakeholders as shown in the table. It can also build horizontal relations with local competitors in the
future when enter new markets, which helps it reduce risk and minimize culture distance. Also, it’s
possible to ally with NGOs, universities, research institutions or banks to access more resources,
improve the performance on CSR and get financial support. However, attention should be put to alliance
about culture clash and integration problems. Moreover, AmSafe should be careful about the risk of
becoming dependent on partner firms for essential expertise and capabilities.
Corporate level strategy
Horizontal Integration--In 2009, AmSafeBridport acquired the designs of one of its more effective
competitors, Hoffmann, based in Germany. Hoffmann had developed a leading position in high strength
cargo nets and, by effectively removing this company,AmSafeBridport was able to strengthen its
position significantly.
Backward Vertical Integration--AmSafeBridport acquired the product line of its main competitor, Air
Cargo Equipment and acquired the product line of a company involved on the fringes of this area,
Halko. Both were US based and both were acquired in the early 2000’s.
Strategy Evaluation Framework
When comes to the part of evaluation in order to understand the most in the current situation of Amsafe
we shall follow on the analysis of internal and external environments. Can the strategy help t he
organisation achieve a sustainable competitive advantage? and is the strategy producing good
organisation performance? To evaluate these strategies we applied Mckinsey’s test and also Rumelts
model found in appendix 7.
Mckinsey 10 tests
Explanation
YES/NO
1.Will AmSafe's
strategy beat the
market?
Amsafe’s strategy is global, they provide standardised products and
are able to maintain competitor advantage.
YES
2. Does AmSafe's
strategy tap the source
of advantage?
Amsafe’s key strategy is Innovation which includes development of
new products and improving the existing ones.
YES
3. Is AmSafe's
strategy granular
about where to
AmSafe's currently are looking to expand into lots of existing
markets (e.g. US defence) as well as seeking new markets for uses
of their products. As a result of this broadness AmSafe's strategy is
NO
compete? not granular.
4. Does AmSafe's
strategy put you ahead
of trends?
Amsafe has long-term contracts with suppliers and customers across
the geographical areas.
YES
5. Does AmSafe's
strategy rest on
privileged insights?
AmSafe's strategy relies upon their experience in the current markets
and predictions about future trends, perhaps the most important
privileged insight is AmSafe's world leading expertise is textile
engineering that rivals will find it difficult to replicate
NO
6. Does AmSafe's
strategy embrace
uncertainty?
AmSafe's desire to develop products in several different markets
embraces uncertainty as to which markets perform the best in future
as by diversifying accross several counter-cyclical markets this can
protect AmSafe from future cyclical uncertainties.
YES
7. Does AmSafe's
strategy balance and
commitment and
flexibility?
Amsafeis flexible in their strategies, they developed light-weight
cargo pallet nets and thermal covers.
YES
8. Is AmSafe's
strategy contaminated
by bias?
Amsafe is transparent regarding their strategies and their relations
with customers and distributors.
NO
9. Is there conviction
to act on AmSafe's
strategy?
Amsafe is convicted to act on Innovation strategy. YES
10. Have AmSafe
translated their
strategy into an action
plan?
Amsafe's main strategy is innovation. They has highly focused on
their innovation , quick drop helicopter under slung system , 5000lb
tie down straps are some of the examples of its innovative strategy.
YES
Recommendations
Based on our internal/external environment research and our evaluation of AmSafe’s current strategies
we have the following recommendations for AmSafe’s future strategies:-
1. Six sigma is used reducing long term defect levels below 3.4 defects per million opportunities.
AmSafe can use this tool to by determining an appropriate sigma level for each of their most
important processes. They seek to reduce the amount of defects as this is the crucial area of
competition in the industry where defects can cost lives.
2. The innovation investment cannot stabilize at 70-20-10, it varies due to several reasons. It is
required to create a balance of core, adjacent and transformational innovation. Key factors to
focus on are talent- attracting and retaining skilled engineers. For transformational innovation
Amsafe needs to employ qualified employees, integration- core innovation and adjacent
innovation always are easily to succeed with existing activities. AmSafe can establish an
independent research centre for them, funding –transformational innovation needs huge
investments whereas core and adjacent doesn’t, amsafe already contracted with MOD they can
cooperate with some civil manufacturer such as Boeing and Airbus to enhance their core
business innovation and pipeline management – most of the companies relyo stage gate process
to find out success idea from lagrge candidates. But this traditional approach doesn’t fit to the
transformational approach. Amsafe needs adjust for accessing level of uncertainity and
financial.
3. Rising competition in aviation industry in the emerging markets, it is suggested for amsafe to
enter emerging markets such as China, Middle East. There are many ways they can enter those
markets. One possible way is by acquisition or joint venture.
4. Companies have to understand CSR take steps like to reduce the CO2 emission and also use
environmental friendly materials. By creating sustainable supply chain management it will help
in building a better image. It's vital for AmSafe to continue implementing its new product
development strategy for that they need to focus on Human Resource Management through
recruiting qualified employees and training them , advance technology and investing more in
R&D department.
Appendix 1: Balanced scorecard
Perspectives Goals Objectives Measurements
Customer Continuously improve
customer satisfaction
throughout global markets
Adapt to different
customer needs, create
brand loyalty
Lead time, Feedback
Internal
Business
Continuously improve
business processes through
improving resources and
capabilities
Increase productivity and
quality
Internal audit measures
Innovation and
Learning
Continuously improve R&D
and innovation
Find new markets with
innovative products,
attract talented employees
New products, new
markets, development
time
Financial Continuously improve
financial performance
3% price increase
3% cost reductions
Sales,
Operating profit
margin
Appendix 2: AmSafe’s resources
Tangible Resources
Physical
• Branches in Bridport UK, Columbo Sri Lanka, Wathipitawala Sri Lanka, Erie
Pennsylvania USA, LA USA, China
• Manufacturing facility and sales offices in Sri Lanka
• In USA,service centre.
• Outsourcing materials in China
Financial
 Proven financial track record
 Credit history
Technological
• Focus on improvement of products in R&D and innovation
• Own patents of low weight products, fire covers such as thermal covers
Organizational
• Prior to 1999,owned by Bridport PLC> Marmon corporation>Pritzker
family>Greenbear and Birkshire>Transdigm
• Columbo covered global accounts to support IT system to Sri Lanka and
UK, sales support to middle and far east customers, design and
development activities
• Wathipitawala covered manufacturing location for all AmsafeBridport volume
product
• Erie covered design and manufacturing in USA, sales support for north USA
Intangible Resources
Human assets & intellectual capital
• Good people and skilled engineers
• Expertise and specialized team leading in textiles industry
• Knowledge and experience to gain and use the raw materials effectively
Brands & reputational assets
• Long company history
• Strong reputation in the market
• Provide the cargo nets to most of the airlines in the world. Tarian products is
the world's leading in innovative products
• ISO
Relationships
• Focus on improvement of products in R&D and innovation
• Own patents of low weight products, fire covers such as thermal covers
Organizational culture & incentive system
• Transdigm focus on three areas> 1. Cost reduction 2.Price increases 3.Product
development
• Cornerstone strategy (the only debate was over 'how" rather than "should we"
• The culture: "Think like an owner, act like an owner"
Appendix 3 Value chain analysis
In this analysis we aim to show where AmSafe adds value by separating both of its primary and
secondary activities into threshold, core and distinctive competencies.
Primary
activities
Competency
Categorization
Supply-Chain
Management
Threshold Key in the market is to be able to manufacture the products quickly,
efficiently and cheaply. AmSafe achieves this.
Core A core competency for AmSafe is that after initial product
development in Bridport manufacturing is moved to low cost areas
such as Sri Lanka where supply costs can be kept low.
Distinctive A distinctive competency for AmSafe is that although
manufacturing is now too expensive in their China location it now
has that location open purely for sourcing better/cheaper supplies
and maintaining good relationships with Chinese suppliers.
Operations Threshold Product development is in Bridport but when product is finalised.
Production is moved with the help of the operations director to Sri
Lanka.
Core A core operations competency of AmSafe is its' ability to attract
and keep high quality engineers that can work efficiently and
develop new products.
Distinctive ---
Distribution Threshold It distributes products and services to manufacturers like Airbus,
Bombardier, AVIC directly or through their suppliers and C & D
Aerospace.
Core Its core capability is that has manufacturing units near the majority
of its customer meaning transportation costs through distribution
are minimised.
Distinctive ---
Marketing &
Sales
Threshold AmSafe works with current customers and potential customers
closely to develop useful products and solve customer problems.
Core AmSafe has built a reputation in the market for very good quality,
this has taken many years but as Ian Kentfield stated can be lost in
a heartbeat.
Distinctive US markets particularly like the history of the company (dating
back to the 13th
century), this helps distinguish AmSafe from
competitors.
After Sale
Services
Threshold Although after sales service is not quite as important as in other
more service based industries AmSafe must still be able to repair
any failed products and offer good service to customers
Core AmSafe excels in this category because it has two major servicing
units both situated in America which is near to it customers and can
quickly repair products
Distinctive ---
Secondary activities:
Procurement This focuses how should business purchase raw material at cheapest .it involves
inventory management. Company strategic alliances with the distributors Satair
(globally recognised), Nordisk for cargo pallets and C&D Zodiac for Boeing
Human resource
management
One of the toughest areas of management is management of employees, different
people come different background and it also incurs huge cost for the selecting
the right person for right job.
Technology Company has greatly emphasised on the technology, which is also includes
product development. AmSafe had its greater part of IT work in Sri Lanka
Infrastructure AmSafe has a rich infrastructure, it sales, design, marketing were in Bridport,
global accounts, product development and IT in Sri Lanka & manufacturing in
Wathipitawala
Appendix 4Competitive Strength Analysis

AmSafe Saco QinetiQ
Key Importance
weight
Strength
rating
Weighted
score
Strength
rating
Weighted
score
Strength
rating
Weighted
score
Success factor /
strength measure
Quality
performance
0.15 8 1.2 8 1.2 7 1.05
Reputation 0.10 8 0.8 8 0.8 8 0.8
Manufacturing
capability
0.15 9 1.35 7 1.05 8 1.2
Technological
skills
0.15 9 1.35 7 1.05 8 1.2
Dealer network 0.15 8 1.2 8 1.2 7 1.05
New product
innovation
0.2 8 1.6 7 1.4 7 1.4
Financial
resources
0.10 8 .8 7 0.7 8 0.8
Sum of
importance
1
Overall weighted
competitive
strength rating
8.3 7.4 8.5
Appendix 5Innovation strategy
Strategic choices for AmSafe
1. Technology
push
AmSafe has a high funding for R&D as they seen innovation as the substantial part of
the business in the internal.
AmSafe also invest in the external relationship with many companies in different
sectors in order to gain raw materials and technology for the innovation. This can be
seen as the co creation from many products.
AmSafe has an aim to move to the new market as their strong mission and vision is to
operate in the global basis.
2.Product
innovation
AmSafe focus in new product selection and new product development. They have a
good collaboration with their partnership and customers to source for the high quality
in raw materials. For instance, Tarian products and thermal cover.
AmSafe has delivered the good products and services to their customers. They ha ve
an engineer team to help their customers directly as to effectively see the problems
and solve it as soon as possible.
AmSafe provides British standards as to ensure for the high standard for Tarian
products.
AmSafeBridport’s pallet nets are designed to exceed the stringent requirements of the
Federal Aviation Administration (FAA) and European Aviation Safety Agency
(EASA).
AmSafe has a partnership to develop additional lightweight products that improve
fuel efficiency and reduce carbon emissions.
Provide dynamic testing facilities, developed dynamic test protocols and procedures
to meet both customer approvals and industry regulations
3. Open
innovation
AmSafe has invested and developed their strong internal capabilities, which can be
seen as they have the strong expertise in engineering team to manage and launch their
product.
AmSafe has a partnership as they acquired many companies to help build, design and
innovate their products. Even their main competitors like QinetiQ.
AmSafe also focus in the new product development from the partnership and the
group of customers to co-creating and co-designing. The company aim to work
closely with them. Measure process is also considered when the company
4. First mover AmSafe has high standard in their technology and innovation to expand their
company to the emerging markets such as China. They also create a good reputation
and brand loyalty especially in the defence industry. Their products are well known
and were used widely in many government sectors. For instance, Tarian products
have set their technical standard in the global market.
5.
Technological
AmSafe innovate their process by investigate new ideas, select the product
development to launch, organise, validate, assemble, test and execute. The company
always discuss with customers in order to find the value added for the company.
Appendix 6: Strategic Alliances
AmSafe has many potential strategic partners to build in creativity, innovation and for sustainability.
 Upstream vertical relations with suppliers: AmSafe worked closely with its Dutch suppliers,
DSM, who developed high tenacity textiles which AmSafe were able to use in their aerospace
and military products
 Downstream vertical relations with buyers: a direct alliance with Boeing for its military 767
aircraft through the work they had carried out designing and manufacturing barrier nets.
 Downstream vertical relations with distributors:AmSafe had strategic alliances with three of its
main distributors – Satair, a Danish company with a global presence; Nordisk, who operated
from Norway and Hong Kong and specialised in sales of cargo pallet nets and tie -down straps;
and C&D Zodiac who had strong links to Boeing. AmSafe has a partnership with Tulmar who is
AmSafe's distributor for aviation seatbelts in Canada. AmSafe signed an extended, on-going
contract with Kuehne + Nagel S.a.r.l to deliver precise logistical support for the DuPont™
Tyvek® Air Cargo Thermal Cover, which AmSafeBridport distributes to its increasing number
of European pharmaceutical customers.
 Indirect horizontal relations with industry outsiders (e.g., complementor): no present alliance,
but could it be possible?
 Direct horizontal relations with industry insiders (competitors): no present alliance, could it be
possible?
 Other organisations: universities, research institutions, banks, lenders, and private equity
organisations? Partnership with AISH - design Tarian product
Appendix 7: Rumelt's model
References
References (External Environment Analysis)
Aero-net (2014). Homepage. Retrieved January 30, 2014 from http://www.aero-net.com/
Deloitte (2014).2014 Global Aerospace and Defense Industry Outlook. Retrieved from
http://www.deloitte.com/assets/Dcom-
UnitedStates/Local%20Assets/Documents/us_AD_GlobalAandDOutlook_01022014.pdf
Direct Industry (2014). Products. Retrieved January 30, 2014 from
http://www.directindustry.com/prod/miloco-group/cargo-nets-8166-652423.html
GPI Forankra (2014). GPI Forankra. Retrieved January 30, 2014 from http://www.gpi-int.fr/
Key Safety Systems (2014). Overview. Retrieved February 3, 2014 from
http://www.keysafetyinc.com/overview.asp
Monaghan, A. (2012, November 27). Aerospace industry warns on technology and skills race. The
Telegraph. Retrieved from
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technology-and-skills-race.html
PwC (2012).Aerospace &defense 2012 year in review and 2013 forecast. Retrieved from
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and-forecast-may2013.pdf
PwC (2012b). Globalization: Aerospace suppliers need a flight plan to sustain growth. Retrieved
from http://www.pwc.com/en_US/us/industrial-products/assets/pwc-gaining-attitude-issue-4-
sustain-growth.pdf
QinetiQ (2014).Products. Retrieved January 30, 2014 from
http://www.qinetiq.com/what/products/Pages/default.aspx
Satco, Inc. (2014). Homepage. Retrieved February 14, 2014 from http://satco-inc.com/
VATSP Update. (2013). Technical Report. Retrieved from
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rs/Ch3-VATSP-Update-Tech-Rpt-03.pdf
References (Internal Environment Analysis)
AmSafe (2014a), About AmSafe. Retrieved February 1, 2014 from http://www.amsafe.com/about-
amsafe/
AmSafe (2014b).AmSafe Executive Management. Retrieved February 3, 2014 from
http://www.amsafe.com/about-amsafe/leadership/amsafe-executive-management/
AmSafe (2014c).AmSafe Facility & Product Line Management. Retrieved February 3, 2014 from
http://www.amsafe.com/about-amsafe/leadership/amsafe-facility-product-line-management/
AmSafe (2014d).News, Media & Events. Retrieved February 8, 2014 from
http://www.amsafe.com/2013/06/12/world-first-faa-easa-safety-approval-awarded-to-amsafe-
bridports-cargo-tie-down-strap/
AmSafe (2014e). Technical Documentation. Retrieved February 8, 2014 from
http://www.amsafe.com/technical-resources/technical-documentation/
AmSafe (2014f). Technical Resources. Retrieved February 8, 2014
from http://www.amsafe.com/technical-resources/
AmSafe (2014g). Testing Facility. Retrieved February 10, 2014
from http://www.amsafe.com/technical-resources/testing-facility/
AmSafe (2014h). Quality Compliance. Retrieved February 10, 2014
from http://www.amsafe.com/technical-resources/quality-compliance/
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., Winter, S. and
Maritan C. (2007). 'Dynamic capabilities and organisational processes'. In Dynamic Capabilities:
Understanding Strategies Change in Organisations, p30-45. Oxford: Blackwell.
References (Key Strategies Identified)
Bhattacharya, A., Hemerling, J. and Waltermann, B. (2010). Competing for Advantage: How to
Succeed in the New Global Reality. Journal. Retrieved March 19, 2014
from http://www.bcg.com/documents/file37656.pdf.
Chan Kim, W. and Mauborgne, R. (2005). 'Blue Ocean Strategy: How to Create Uncontested
Mareket Space and Make Competition Irrelevant', Harvard Business Press.
Dewit, B. and Meyer, R. (2010). Strategy Synthesis 3rd. London: Cengage Learning.
Ghemawat, P. (2007). Why the World isn't Flat Journal. Retrieved March 20, 2014
from http://www.foreignpolicy.com/articles/2007/02/14/why_the_world_isnt_flat.
Janes, A., Kentfield, I. and McIIwraith, R. (2014). Case Study: AmSafeBridport.
Strategy Evaluation Framework
Bradley, C., Hirt, M. and Smit, S. (2011). Have you tested your strategy lately? Journal. Retrieved
March 21, 2014
from http://www.mckinsey.com/insights/strategy/have_you_tested_your_strategy_lately.

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AmSafe's Strategic Analysis and Future Direction

  • 1. U n i v e r s i t y o f E x e t e r Strategy (BEMM119) Group Report Drew Reynard – Xin Wang – Xiaoyao Zhu – Archit Garg – Janevisa Pattarapornpisit – Siyu Chen Group 28 Abstract This report is an executive summary of a case study assignment looking into the current and future strategies of UK-based engineered textiles manufacturer AmSafe. For any further detail required please see the wiki page for all of the collated information and references used. AmSafeBridport is the world’s leading provider of safety restraint products and is a dominant force in three separate markets, the markets for cargo, airframes and as of recently the market for Tarian (an RPG defence net aimed at military markets). AmSafe have recently been acquired by American private-equity firm Transdigm and the new owners have asked AmSafe to focus on three key areas; cost reductions, price increases and product development. Therefore these must be the aims for any future strategy ensuring AmSafe maintain their position as global market leader. These strategies must balance financial objectives with strategic objectives, for AmSafe how these goals can be measured can be seen in the balanced scorecard in appendix 1.
  • 2. Scene-Setting and Environmental/Internal Analysis External Analysis We started our analysis by looking at AmSafe’s external environment. Figure 1 shows the various impacting factors for AmSafe. These signify it is operating in a fast-moving environment. These dynamics help us to look forward in regards to what drivers will change the industry in the near future. The wide variety of different drivers also indicates the difficulty AmSafe faces in moulding a coherent strategy going forward that embraces market uncertainties. Figure 1: Amsafe forces and drivers Taking these drivers, we concluded several basic trends. Firstly, there is an increasing demand for reduced-weight products. Secondly, there is increasing concern about the risk cargo transporting brings. Also, the aviation industry is embracing a deregulation trend leading to growth in emerging marketsbut also increasing costs. Based on the analysis, we built four scenarios centredon two key uncertainties that are economic condition and the potential of war or terrorist attack (see figure 2). The scope of the scenario is to forecast the effects to the future in 2019, at the global level and covering the industry of commercial aviation and defence business.
  • 3. Figure 2: AmSafe Scenario Planning ‘Struggle to maintain the position’ results in an increased demand in the defence industry but a decreased demand in aviation industry. In this situation, AmSafe could continue its innovation strategy to develop more products in defence industry and change its product portfolio. ‘Struggle to survive’ sees both commercial aviation and defence industry suffer from low demand, making AmSafe struggle to survive. In this case, AmSafe could try to increase profit margin by cutting down costs and increase efficiency.‘Aviation booming’ describes a future with demand increases in aviation industry due to the economy booming while defence industry doesn’t change much. Amsafe can best benefit it by carrying out a best-cost strategy, and expanding their markets. ‘Both market booming’ sees both industries striving AmSafe can take advantage of this by carrying out innovation, diversification, market penetration and market development. However, this situation has very low possibility of happening, as the economy tends to contract when war or terrorist attacks occurs.
  • 4. Figure 3: Industry Life Cycles Key: Blue = Tarian (defence) Red = Airframe Green = Cargo AmSafe’s three markets are at different stages in the industry life-cycle (shown above), this suggests that since the defence sector is in the growth stage that future strategies should be focussed on filling this expanding demand, be it through new product innovation or blue ocean strategies to satisfy new demands. Internal analysis Resources and Capabilities Appendix 2 identifies the key resources of AmSafe. In isolation resources do not provide a company with a competitive advantage. Figure 4 looks at the capabilities of AmSafe and puts them into hierarchical order according to the scope of knowledge that they integrate. Figure 4: AmSafe Hierarchical Capabilities
  • 5. This table shows AmSafe's hierarchical capabilities by scope of knowledge. Considering the dynamic and changeable environment Amsafe operates in, it’s not enough to only analyse the capability in a predictable and stable environment. Therefore, consideration is given to dynamic capabilities. Figure 5 identifies Amsafe’s dynamic capabilities that build or grow within the firm and cannot be purchased. Figure 5: AmSafe’s Dynamic Capabilities 
 AmSafe’sforward-thinking strategies have led them to a dynamic capability rich position. They have strong dynamic capabilities in the management process that helps them to adapt to uncertainties and unexpected events A traditional VRIN framework is used to analyse the resources and capabilities of Amsafe. Figure 6: AmSafe VRIN Framework
  • 6. The chart illustrates clearly that AmSafe is strong in the innovation design, capabilities and intellectual assets from traditional analysis. They can provide developed products that fit for the advanced aircraft, their advanced lightweight cargo pallets are the industry leading products. Because of the good quality and timely innovation, they also acquired a good reputation and stable customer. However, due to the fast moving competition AmSafe needs to shorten the time from idea to product in order to stay ahead of competitors. Another tool, the value chain, is introduced in appendix 3.The main channels through which AmSafe adds value are its expertise on the manufacturing and product development side. Its vast experience and knowledge of the market help it to develop the very best products that outcompete rivals through sheer quality. This can be seen through its development and rapid success of its' latest product Tarian. AmSafe's ability to further its current products whilst moving into new markets not only generate profit but also adds value to customers as products were not previously available in some of these markets. This value added arises through AmSafe working closely with current and prospective customers to develop better products and solve any problems they have. Combining all of the above strategies gives us the TOWS matrix below which shows how AmSafe’s environment influences their strategy.
  • 7. Figure 7: TOWS analysis for AmSafe TOWS Strengths 1.Product innovation capabilities 2.Skilled engineers 3.Strong brand and reputation 4.Proven capabilities in improving production processes 5.Good relationship with suppliers+distributors 6.Good quality products Weaknesses 1.Centralised management structure (slow reaction) 2.Product to market lag time Opportunities 1.The growth of aviation industry in emerging countries 2.Customer demand for reduced- weight products increasing 3.Deregulation of aviation industry OS 1.Market development (emerging markets, new markets) 2.Blue ocean strategy OT 1.Use large-scale production units to exploit economies of scale 2.Reduce lag time by increasing innovation investment Threats 1.The cyclical nature of commercial aviation industry 2.Defence sector regulation 3.Increasing labour costs (China) 4.Credit risk and customer default 5.(low-cost)Competitors emerging particularly in emerging markets 6.Foreign exchange movement TS 1.Innovation strategy - product development strategy 2.Arbitrage - global supply chain 3.Best-cost strategy - maintain quality and innovation when control the cost WT 1.Set up a financial department to deal with foreign exchange movement 2.Decentralise to give subsidiaries more autonomy to operate Key Strategies Identified Business level strategy AmSafe has recently pursued several different business level strategies as illustrated below: Best-Cost Provider – AmSafe target 3% year on year cost reductions. This cost-minimising strategy is combined with a product differentiation strategy with the aim of maximising customer satisfaction. AmSafe has done this by cutting costs in its’ broad market (commercial aviation) in order to appeal to a niche market in the form of it’s Tarian product (Thompson et al 2012, p167). Maintaining this prof itable middle-ground is vital for future strategy implementation. Blue Ocean strategy - AmSafe has also sought to create uncontested markets through investment in its product development and R&D. An example of this is its' thriving Tarian business which now represents 20% of AmSafe's profits even though it was only established several years ago. Although this market is now contested through competitors such as Qinetiq, AmSafe still exploits a first mover advantage and this side of the business is highly profitable and expanding quickly.
  • 8. Figure 8Tarian Strategy Canvas This Strategy canvas visually represents the areas of competition that AmSafe is outperforming its' competitors such as Qinetiq in and those where it is being outcompeted. It can clearly be seen that this represents a blue ocean strategy, as AmSafe is able to offer far more than competitors especially in terms of how the product is reusable and lightweight. AmSafe’s international strategy- Another of AmSafe's recent strategies has been to expand the outreach of its' operations into America, Sri Lanka, China to complement its corporate headquarters in Bridport. This strategy helps to locate AmSafe closer to both its' customers and its' suppliers (e.g. many of AmSafe's suppliers are located close to its China base). This strategy has the benefit of AmSafe being able maintain and establish relationships more easily both with suppliers and customers. By being located in China this also gives AmSafe the ability to source new suppliers and better manage their supply chain, as production in China has now ceased this is the sole aim of the China unit. In this version of the BCG diamond model AmSafe's current position is shown by the red dots/lines. By looking at AmSafe's overall position in the diagram above we can see where AmSafe performs strong and weak, as a perfect international strategy would involve moving to the extremities on each
  • 9. access to have the shape of the dotted diamond line. This can act as a guide for future strategies. AmSafe has the ability in the future to explore new markets and expand current product ranges. Especially since its' recent acquisition by Transdigm, AmSafe has the opportunity to work with other companies that come under the 'Transdigm umbrella'. Such as the Naval supply company Ian Kentfield mentioned in the lecture. These connections and relationships give AmSafe the ability to find new markets and make new products. Three A's model - AmSafe has previously operated an arbitrage international strategy. Whereby, it exploits global differences (for example low cost labour in Sri Lanka) to reduce costs and enhance performance. The main strategy through which this arbitrage is achieved is via offshoring. Where AmSafe moves parts of it's production to the areas where cost can be minimized and differences exploited. This enables them to 'Buy low in one market and sell high in another' successfully arbitraging the market. Figure 9: Signals AmSafe’s advantages from international strategy Innovation strategy Currently, Amsafe is highly efficient in terms of innovation management. They seem to respond quickly to the rapidly changing environment to build their competitive advantage which can be seen from many awards they had received in recent years such as the queen’s award for developing exceptional performance in Tarian products (Amsafe.com, 2013). To emphasize in the quality of the products, they also have the contract with the government such as the MOD in the UK. It can be said that the ir product innovation has a high quality standard as they have a strong customers and reputations in both defence and aviation industry. According to Nagji and Tuff (2012), the enterprise that concurrently has a substantial innovation management may seen in the clear vision of investing in three levels of aspiration and trying to manage the balance among these factors. This ratio can be seen as 70% for core, 20% for adjacent and 10% for transformational. Amsafe has almost met this criteria by developing their products to follow this ratio. Thus, this leads to the good innovation management in the company. For instance, 70% of typical research and development in lightweight pallet nets as the core to optimize the existing
  • 10. products, around 20% from fire contain covers as the adjacent in the new to the company business and nearly 10% of transformational Tarian products as to invent products that market do not have and their revenue has turned back well as seen from the financial data. The aim of the company is trying to improve their talent, integration, funding and pipeline management to improve their sustainable innovative development. Figure 10: Innovation Strategy Figure 11: Network level Strategy
  • 11. AmSafe has built strategic alliances with many of its stakeholders. AmSafe already allied with some stakeholders as shown in the table. It can also build horizontal relations with local competitors in the future when enter new markets, which helps it reduce risk and minimize culture distance. Also, it’s possible to ally with NGOs, universities, research institutions or banks to access more resources, improve the performance on CSR and get financial support. However, attention should be put to alliance about culture clash and integration problems. Moreover, AmSafe should be careful about the risk of becoming dependent on partner firms for essential expertise and capabilities. Corporate level strategy Horizontal Integration--In 2009, AmSafeBridport acquired the designs of one of its more effective competitors, Hoffmann, based in Germany. Hoffmann had developed a leading position in high strength cargo nets and, by effectively removing this company,AmSafeBridport was able to strengthen its position significantly. Backward Vertical Integration--AmSafeBridport acquired the product line of its main competitor, Air Cargo Equipment and acquired the product line of a company involved on the fringes of this area, Halko. Both were US based and both were acquired in the early 2000’s. Strategy Evaluation Framework When comes to the part of evaluation in order to understand the most in the current situation of Amsafe we shall follow on the analysis of internal and external environments. Can the strategy help t he organisation achieve a sustainable competitive advantage? and is the strategy producing good organisation performance? To evaluate these strategies we applied Mckinsey’s test and also Rumelts model found in appendix 7. Mckinsey 10 tests Explanation YES/NO 1.Will AmSafe's strategy beat the market? Amsafe’s strategy is global, they provide standardised products and are able to maintain competitor advantage. YES 2. Does AmSafe's strategy tap the source of advantage? Amsafe’s key strategy is Innovation which includes development of new products and improving the existing ones. YES 3. Is AmSafe's strategy granular about where to AmSafe's currently are looking to expand into lots of existing markets (e.g. US defence) as well as seeking new markets for uses of their products. As a result of this broadness AmSafe's strategy is NO
  • 12. compete? not granular. 4. Does AmSafe's strategy put you ahead of trends? Amsafe has long-term contracts with suppliers and customers across the geographical areas. YES 5. Does AmSafe's strategy rest on privileged insights? AmSafe's strategy relies upon their experience in the current markets and predictions about future trends, perhaps the most important privileged insight is AmSafe's world leading expertise is textile engineering that rivals will find it difficult to replicate NO 6. Does AmSafe's strategy embrace uncertainty? AmSafe's desire to develop products in several different markets embraces uncertainty as to which markets perform the best in future as by diversifying accross several counter-cyclical markets this can protect AmSafe from future cyclical uncertainties. YES 7. Does AmSafe's strategy balance and commitment and flexibility? Amsafeis flexible in their strategies, they developed light-weight cargo pallet nets and thermal covers. YES 8. Is AmSafe's strategy contaminated by bias? Amsafe is transparent regarding their strategies and their relations with customers and distributors. NO 9. Is there conviction to act on AmSafe's strategy? Amsafe is convicted to act on Innovation strategy. YES 10. Have AmSafe translated their strategy into an action plan? Amsafe's main strategy is innovation. They has highly focused on their innovation , quick drop helicopter under slung system , 5000lb tie down straps are some of the examples of its innovative strategy. YES Recommendations Based on our internal/external environment research and our evaluation of AmSafe’s current strategies we have the following recommendations for AmSafe’s future strategies:- 1. Six sigma is used reducing long term defect levels below 3.4 defects per million opportunities. AmSafe can use this tool to by determining an appropriate sigma level for each of their most important processes. They seek to reduce the amount of defects as this is the crucial area of competition in the industry where defects can cost lives. 2. The innovation investment cannot stabilize at 70-20-10, it varies due to several reasons. It is required to create a balance of core, adjacent and transformational innovation. Key factors to focus on are talent- attracting and retaining skilled engineers. For transformational innovation Amsafe needs to employ qualified employees, integration- core innovation and adjacent innovation always are easily to succeed with existing activities. AmSafe can establish an independent research centre for them, funding –transformational innovation needs huge
  • 13. investments whereas core and adjacent doesn’t, amsafe already contracted with MOD they can cooperate with some civil manufacturer such as Boeing and Airbus to enhance their core business innovation and pipeline management – most of the companies relyo stage gate process to find out success idea from lagrge candidates. But this traditional approach doesn’t fit to the transformational approach. Amsafe needs adjust for accessing level of uncertainity and financial. 3. Rising competition in aviation industry in the emerging markets, it is suggested for amsafe to enter emerging markets such as China, Middle East. There are many ways they can enter those markets. One possible way is by acquisition or joint venture. 4. Companies have to understand CSR take steps like to reduce the CO2 emission and also use environmental friendly materials. By creating sustainable supply chain management it will help in building a better image. It's vital for AmSafe to continue implementing its new product development strategy for that they need to focus on Human Resource Management through recruiting qualified employees and training them , advance technology and investing more in R&D department.
  • 14. Appendix 1: Balanced scorecard Perspectives Goals Objectives Measurements Customer Continuously improve customer satisfaction throughout global markets Adapt to different customer needs, create brand loyalty Lead time, Feedback Internal Business Continuously improve business processes through improving resources and capabilities Increase productivity and quality Internal audit measures Innovation and Learning Continuously improve R&D and innovation Find new markets with innovative products, attract talented employees New products, new markets, development time Financial Continuously improve financial performance 3% price increase 3% cost reductions Sales, Operating profit margin Appendix 2: AmSafe’s resources Tangible Resources Physical • Branches in Bridport UK, Columbo Sri Lanka, Wathipitawala Sri Lanka, Erie Pennsylvania USA, LA USA, China • Manufacturing facility and sales offices in Sri Lanka • In USA,service centre. • Outsourcing materials in China Financial  Proven financial track record  Credit history Technological • Focus on improvement of products in R&D and innovation • Own patents of low weight products, fire covers such as thermal covers Organizational • Prior to 1999,owned by Bridport PLC> Marmon corporation>Pritzker family>Greenbear and Birkshire>Transdigm • Columbo covered global accounts to support IT system to Sri Lanka and UK, sales support to middle and far east customers, design and development activities • Wathipitawala covered manufacturing location for all AmsafeBridport volume product • Erie covered design and manufacturing in USA, sales support for north USA Intangible Resources Human assets & intellectual capital • Good people and skilled engineers
  • 15. • Expertise and specialized team leading in textiles industry • Knowledge and experience to gain and use the raw materials effectively Brands & reputational assets • Long company history • Strong reputation in the market • Provide the cargo nets to most of the airlines in the world. Tarian products is the world's leading in innovative products • ISO Relationships • Focus on improvement of products in R&D and innovation • Own patents of low weight products, fire covers such as thermal covers Organizational culture & incentive system • Transdigm focus on three areas> 1. Cost reduction 2.Price increases 3.Product development • Cornerstone strategy (the only debate was over 'how" rather than "should we" • The culture: "Think like an owner, act like an owner" Appendix 3 Value chain analysis In this analysis we aim to show where AmSafe adds value by separating both of its primary and secondary activities into threshold, core and distinctive competencies. Primary activities Competency Categorization Supply-Chain Management Threshold Key in the market is to be able to manufacture the products quickly, efficiently and cheaply. AmSafe achieves this. Core A core competency for AmSafe is that after initial product development in Bridport manufacturing is moved to low cost areas such as Sri Lanka where supply costs can be kept low. Distinctive A distinctive competency for AmSafe is that although manufacturing is now too expensive in their China location it now has that location open purely for sourcing better/cheaper supplies and maintaining good relationships with Chinese suppliers. Operations Threshold Product development is in Bridport but when product is finalised. Production is moved with the help of the operations director to Sri Lanka. Core A core operations competency of AmSafe is its' ability to attract and keep high quality engineers that can work efficiently and develop new products. Distinctive --- Distribution Threshold It distributes products and services to manufacturers like Airbus, Bombardier, AVIC directly or through their suppliers and C & D Aerospace.
  • 16. Core Its core capability is that has manufacturing units near the majority of its customer meaning transportation costs through distribution are minimised. Distinctive --- Marketing & Sales Threshold AmSafe works with current customers and potential customers closely to develop useful products and solve customer problems. Core AmSafe has built a reputation in the market for very good quality, this has taken many years but as Ian Kentfield stated can be lost in a heartbeat. Distinctive US markets particularly like the history of the company (dating back to the 13th century), this helps distinguish AmSafe from competitors. After Sale Services Threshold Although after sales service is not quite as important as in other more service based industries AmSafe must still be able to repair any failed products and offer good service to customers Core AmSafe excels in this category because it has two major servicing units both situated in America which is near to it customers and can quickly repair products Distinctive --- Secondary activities: Procurement This focuses how should business purchase raw material at cheapest .it involves inventory management. Company strategic alliances with the distributors Satair (globally recognised), Nordisk for cargo pallets and C&D Zodiac for Boeing Human resource management One of the toughest areas of management is management of employees, different people come different background and it also incurs huge cost for the selecting the right person for right job. Technology Company has greatly emphasised on the technology, which is also includes product development. AmSafe had its greater part of IT work in Sri Lanka Infrastructure AmSafe has a rich infrastructure, it sales, design, marketing were in Bridport, global accounts, product development and IT in Sri Lanka & manufacturing in Wathipitawala Appendix 4Competitive Strength Analysis
 AmSafe Saco QinetiQ Key Importance weight Strength rating Weighted score Strength rating Weighted score Strength rating Weighted score
  • 17. Success factor / strength measure Quality performance 0.15 8 1.2 8 1.2 7 1.05 Reputation 0.10 8 0.8 8 0.8 8 0.8 Manufacturing capability 0.15 9 1.35 7 1.05 8 1.2 Technological skills 0.15 9 1.35 7 1.05 8 1.2 Dealer network 0.15 8 1.2 8 1.2 7 1.05 New product innovation 0.2 8 1.6 7 1.4 7 1.4 Financial resources 0.10 8 .8 7 0.7 8 0.8 Sum of importance 1 Overall weighted competitive strength rating 8.3 7.4 8.5 Appendix 5Innovation strategy Strategic choices for AmSafe 1. Technology push AmSafe has a high funding for R&D as they seen innovation as the substantial part of the business in the internal. AmSafe also invest in the external relationship with many companies in different sectors in order to gain raw materials and technology for the innovation. This can be seen as the co creation from many products. AmSafe has an aim to move to the new market as their strong mission and vision is to operate in the global basis. 2.Product innovation AmSafe focus in new product selection and new product development. They have a good collaboration with their partnership and customers to source for the high quality in raw materials. For instance, Tarian products and thermal cover. AmSafe has delivered the good products and services to their customers. They ha ve an engineer team to help their customers directly as to effectively see the problems and solve it as soon as possible. AmSafe provides British standards as to ensure for the high standard for Tarian products.
  • 18. AmSafeBridport’s pallet nets are designed to exceed the stringent requirements of the Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA). AmSafe has a partnership to develop additional lightweight products that improve fuel efficiency and reduce carbon emissions. Provide dynamic testing facilities, developed dynamic test protocols and procedures to meet both customer approvals and industry regulations 3. Open innovation AmSafe has invested and developed their strong internal capabilities, which can be seen as they have the strong expertise in engineering team to manage and launch their product. AmSafe has a partnership as they acquired many companies to help build, design and innovate their products. Even their main competitors like QinetiQ. AmSafe also focus in the new product development from the partnership and the group of customers to co-creating and co-designing. The company aim to work closely with them. Measure process is also considered when the company 4. First mover AmSafe has high standard in their technology and innovation to expand their company to the emerging markets such as China. They also create a good reputation and brand loyalty especially in the defence industry. Their products are well known and were used widely in many government sectors. For instance, Tarian products have set their technical standard in the global market. 5. Technological AmSafe innovate their process by investigate new ideas, select the product development to launch, organise, validate, assemble, test and execute. The company always discuss with customers in order to find the value added for the company. Appendix 6: Strategic Alliances AmSafe has many potential strategic partners to build in creativity, innovation and for sustainability.  Upstream vertical relations with suppliers: AmSafe worked closely with its Dutch suppliers, DSM, who developed high tenacity textiles which AmSafe were able to use in their aerospace and military products  Downstream vertical relations with buyers: a direct alliance with Boeing for its military 767 aircraft through the work they had carried out designing and manufacturing barrier nets.  Downstream vertical relations with distributors:AmSafe had strategic alliances with three of its main distributors – Satair, a Danish company with a global presence; Nordisk, who operated from Norway and Hong Kong and specialised in sales of cargo pallet nets and tie -down straps; and C&D Zodiac who had strong links to Boeing. AmSafe has a partnership with Tulmar who is AmSafe's distributor for aviation seatbelts in Canada. AmSafe signed an extended, on-going contract with Kuehne + Nagel S.a.r.l to deliver precise logistical support for the DuPont™ Tyvek® Air Cargo Thermal Cover, which AmSafeBridport distributes to its increasing number of European pharmaceutical customers.  Indirect horizontal relations with industry outsiders (e.g., complementor): no present alliance, but could it be possible?  Direct horizontal relations with industry insiders (competitors): no present alliance, could it be possible?  Other organisations: universities, research institutions, banks, lenders, and private equity organisations? Partnership with AISH - design Tarian product
  • 20. References References (External Environment Analysis) Aero-net (2014). Homepage. Retrieved January 30, 2014 from http://www.aero-net.com/ Deloitte (2014).2014 Global Aerospace and Defense Industry Outlook. Retrieved from http://www.deloitte.com/assets/Dcom- UnitedStates/Local%20Assets/Documents/us_AD_GlobalAandDOutlook_01022014.pdf Direct Industry (2014). Products. Retrieved January 30, 2014 from http://www.directindustry.com/prod/miloco-group/cargo-nets-8166-652423.html GPI Forankra (2014). GPI Forankra. Retrieved January 30, 2014 from http://www.gpi-int.fr/ Key Safety Systems (2014). Overview. Retrieved February 3, 2014 from http://www.keysafetyinc.com/overview.asp Monaghan, A. (2012, November 27). Aerospace industry warns on technology and skills race. The Telegraph. Retrieved from http://www.telegraph.co.uk/finance/newsbysector/industry/9704251/Aerospace-industry-warns-on- technology-and-skills-race.html PwC (2012).Aerospace &defense 2012 year in review and 2013 forecast. Retrieved from http://www.pwc.com/en_US/us/industrial-products/assets/pwc-aerospace-defense-year-in-review- and-forecast-may2013.pdf PwC (2012b). Globalization: Aerospace suppliers need a flight plan to sustain growth. Retrieved from http://www.pwc.com/en_US/us/industrial-products/assets/pwc-gaining-attitude-issue-4- sustain-growth.pdf QinetiQ (2014).Products. Retrieved January 30, 2014 from http://www.qinetiq.com/what/products/Pages/default.aspx Satco, Inc. (2014). Homepage. Retrieved February 14, 2014 from http://satco-inc.com/ VATSP Update. (2013). Technical Report. Retrieved from http://www.doav.virginia.gov/Downloads/Studies/VATSP%20Update/2003%20VATSP%20Chapte rs/Ch3-VATSP-Update-Tech-Rpt-03.pdf References (Internal Environment Analysis) AmSafe (2014a), About AmSafe. Retrieved February 1, 2014 from http://www.amsafe.com/about- amsafe/ AmSafe (2014b).AmSafe Executive Management. Retrieved February 3, 2014 from http://www.amsafe.com/about-amsafe/leadership/amsafe-executive-management/ AmSafe (2014c).AmSafe Facility & Product Line Management. Retrieved February 3, 2014 from http://www.amsafe.com/about-amsafe/leadership/amsafe-facility-product-line-management/ AmSafe (2014d).News, Media & Events. Retrieved February 8, 2014 from http://www.amsafe.com/2013/06/12/world-first-faa-easa-safety-approval-awarded-to-amsafe- bridports-cargo-tie-down-strap/
  • 21. AmSafe (2014e). Technical Documentation. Retrieved February 8, 2014 from http://www.amsafe.com/technical-resources/technical-documentation/ AmSafe (2014f). Technical Resources. Retrieved February 8, 2014 from http://www.amsafe.com/technical-resources/ AmSafe (2014g). Testing Facility. Retrieved February 10, 2014 from http://www.amsafe.com/technical-resources/testing-facility/ AmSafe (2014h). Quality Compliance. Retrieved February 10, 2014 from http://www.amsafe.com/technical-resources/quality-compliance/ Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., Winter, S. and Maritan C. (2007). 'Dynamic capabilities and organisational processes'. In Dynamic Capabilities: Understanding Strategies Change in Organisations, p30-45. Oxford: Blackwell. References (Key Strategies Identified) Bhattacharya, A., Hemerling, J. and Waltermann, B. (2010). Competing for Advantage: How to Succeed in the New Global Reality. Journal. Retrieved March 19, 2014 from http://www.bcg.com/documents/file37656.pdf. Chan Kim, W. and Mauborgne, R. (2005). 'Blue Ocean Strategy: How to Create Uncontested Mareket Space and Make Competition Irrelevant', Harvard Business Press. Dewit, B. and Meyer, R. (2010). Strategy Synthesis 3rd. London: Cengage Learning. Ghemawat, P. (2007). Why the World isn't Flat Journal. Retrieved March 20, 2014 from http://www.foreignpolicy.com/articles/2007/02/14/why_the_world_isnt_flat. Janes, A., Kentfield, I. and McIIwraith, R. (2014). Case Study: AmSafeBridport. Strategy Evaluation Framework Bradley, C., Hirt, M. and Smit, S. (2011). Have you tested your strategy lately? Journal. Retrieved March 21, 2014 from http://www.mckinsey.com/insights/strategy/have_you_tested_your_strategy_lately.