Strategic Management

Case 5: Winnebago Industries 2008

Companys Background:
Winnebago is one of the leading companies in manufacturing recreational vehicles (RV). They
use computer software for RV development such as computer-aided design (CAD) and
computer-aided manufacturing (CAM) for certain reasons like cost reduction, design evaluations
and so. Winnebago was founded by an entrepreneur named John K. Hanson who along with his
colleagues influenced a California company to open a travel trailer company in 1958. For two
years the factory had a named based on the California but in 1960 the factory was renamed to
Winnebago. Winnebago has a very good brand image also they have strong assets and not many
liabilities.

Vision and Mission Statement Analysis:

Vision Statement:
Our vision is to become the Global leader in manufacturing and sales of Recreational Vehicles.

The vision is statement is really good as it is clear and concise. The statement is clearly explains
that how the company wants to be recognized.

Mission Statement:
Winnebago Industries is a leading United States manufacturer of motor homes and related
products and services. Our mission is to continually improve our products and services to meet
or exceed the expectations of our customers. We emphasize employee teamwork and
involvement in identifying and implementing programs to save time and lower production costs
while maintaining the highest quality of products. These strategies have allowed us to prosper as
a business with a high degree of integrity and to provide a reasonable return for our shareholders,
the owners of our business.

The mission statement is also good enough as it is covering many important components of
mission statement such as products and services, customers, employees, self-concept and so.
However given that it is a big manufacturing company, they need to add the component of
environment.

These vision and mission statement are from year 2008.

Competitive Profile Matrix:
Winnebago Monaco Coach Coachman
Critical Success Weight Rating Score Rating Score Rating Score
Factors
Brand Image 0.10 4 0.40 4 0/40 3 0.30
Financial 0.15 4 0.60 3 0.45 1 0.15
Strength
Product 0.15 3 0.45 3 0.45 3 0.45
Service 0.15 3 0.45 3 0.45 3 0.45
Price 0.15 4 0.60 3 0.45 4 0.60
Management 0.10 3 0.30 2 0.20 2 0.20
Market Share 0.20 4 0.80 2 0.40 1 0.20
Total 1.0 3.6 2.80 2.35

The CPM shows that against Monaco Coach and Coachman, Winnebago is much superior due to
much strength in given factors.

EFE Matrix:
Key Factors Weight Rating Weighted Score
Opportunities
Innovation 0.15 3 0.45
Go Green Program 0.10 1 0.10
Customization feature 0.10 4 0.40
Rental companies (RV) 0.15 3 0/45
Threats
Competition 0.10 2 0.20
Environment concern 0.15 1 0.15
Other travel types 0.15 1 0.15
Unfavorable economic 0.10 2 0.20
factors
Total 1.0 2.10

IFE Matrix:
Key Factors Weight Rating Weighted Score
Strengths
Brand Image 0.15 4 0.60
Technology 0.10 4 0.40
Product quality & service 0.10 4 0.40
R&D 0.10 4 0.40
No long-term debt 0.05 3 0.15
Weaknesses
Design 0.10 1 0.10
Low sales 0.15 1 0.15
Low net income 0.15 1 0.15
High Price 0.10 2 0.20
Large inventory 0.10 1 0.10
Total 1.0 2.65

SWOT Matrix:
SO strategies WO strategies ST strategies WT strategies
Partnership with Develop eco- Advertise on travel Outsource
rental companies friendly RVs websites contracts to
Develop Go Green Redesign through Develop eco- reduce inventory
Campaign CAD friendly RVs Redesign vehicles
Introduce structure
customization
feature

IE Matrix: IFE Total Weighted Score

3.0 4.0 2.0 2.99 1.0 1.99

 1 2 3 3.0 4.00

EFE Weighted Score

4 5 6
Winnebago 2.0 2.99

7 8 9
1.0 1.99

The company falls in the 5th box so essentially they have to hold and maintain the company. They
can adopt two strategies:

Market Penetration
Product Development

Space Matrix:
Internal Strategic Position External Strategic Position
Financial Strength (FS) Competitive Advantage Environmental Stability Industry Strength (IS)
(CA) (ES)
Liquidity 6 Market share Inflation Growth potential
Cash Flow 2 -2 -4 3
Inventory turnover 5 Product Quality Barriers to entry Profit potential
EPS 4 -1 -2 2
Revenue Growth 6 Product lifecycle Competition pressure Financial stability
-1 -3 4
Customer loyalty Ease of exit Ease of entry
-2 -3 2
Control over suppliers Price elasticity Productivity
-4 -5 4
Average(+) Average(-) Average(-) Average(+)
4.6 -2.0 -3.4 3
 Difference: (1.2, 1)

FP

CP IP

SP
The company falls under aggressive profile where they can adopt certain strategies like market
penetration, product development, market development, integration strategies as well.

Grand Strategy Matrix:

Rapid Market Growth

Weak Competitive Position Strong Competitive Position

In grand strategy matrix, the company fall in quadrant 1 where they can use intensive strategies
as well as integrated strategies. Slow Market Growth

@Quantitative Strategic Planning Matrix (QSPM):

In QSPM, we established two new strategies one is to create eco-friendly RVs and the other is
develop a Towable Segment. According to the results, Winnebago should opt for eco-friendly
RVs development