Operations Strategy for

Competitive Advantage

Chapter 2
What is Regal Marine?
• Regal Marine was established in 1967 as a family owned
business (Florida).
• One of the ten most important boat manufacturers
• Currently, they sell new and used luxury boats
• Customers can shop online
• Company provides many services:
               - mechanical service
               - boat fit out
               - sounder and electronic installation
               - trailer service
Regal Marine - Mission

• IN GENERAL:
As a service company, their mission is
to satisfy their customers’ immediate
needs and wants by providing them with a
wide variety of goods and services at
multiple locations.  
Regal Marine - Mission

• To provide:
– Quality and reliability.
– Value : distinctable feactures that add value
to their products. Innovations.
– Satisfaction to costumers. Good and quick
service.
• To be profitable but continue being a
honest company with character.
Regal Marine - Strategy
• How mission will be achieved.
• They use the strategy of differentiation
• To accomplish the mission they:
– Reduce cycle times
– Improve processes
– Use alternative products
– Constantly innovate
– Include unique features
– Produce High quality goods
Regal Marine - Strategy
• Broad product line : 22 boat models.
• Best in class, distinctive products.
• Computer-aided design, high quality molds, close
tolerances, charts and rigorous visual inspections
• Large number of suppliers to ensure flexibility and
perfect parts
• To must compete with, not only other boat
manufacturers, but also with other ‘fun’
providers/bussinesses. Associating boats and sailing with
entertaining.
Regal Marine – Product Design

• Factors that affect the Product Design in

Regal Marine:
– Customer tastes
– Trends
– Competitive products
– Material Innovations
– Government Regulation
– Taxes
Regal Marine – Product Design

• The process starts with coming up with new

ideas : Workteam
“New Product Management Team”
where engineers, manufacturers, salesmen, marketing experts and more,
work together.
• Always taking into account opportunities and
fluctuations in the marketplace (Flexible) and
ensuring that environmentally-friendly products
are made.
• Use of a fully functional, real scale boat for tests
before comercialising the product.
Regal Marine – Product Design

• CAD design -> Molds (handmade)

• Quick product development : by getting
the suppliers on board early and urging
them to participate at the design stage
• 3 year life cycle needs quick response
• Existing boat designs are always evolving
in Regal Marine.
 Regal Marine – Supply-Chain
Management
• The supply-chain management is important to Regal
because:
– Cost Control : Reduce or even eliminate raw materials’
inventory
– On-time deliveries
– Reduce cost and increase contribution margins. Without
reducing value and quality.

• Importance of dealers/distributors not only in USA but in

every country they sell. First class distributors are crucial
for a good representation of the company (public image)
and to assure high quality.
 Regal Marine – Supply-Chain
Management
• Techniques:
– Partnering :
Commitment with the key suppliers to
achieve realibility of products, cost..
Continuous improvement process

– Participation in ABA (American Boat

Association) with other boat manufacturers :
Higher qualities/volume levels