The Effects of Global Competition on Riordan Manufacturing

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Riordan Manufacturing is an international plastics manufacturer with its development and research operation located at the company's San Jose headquarters. Riordan produces custom plastic parts in Michigan, and beverage containers are produced in its New York plant. Riordan Manufacturing also produces fan parts in Hang Zhou, China, with similar operations in Georgia and Michigan. Riordan has reportedly experienced several problems, including dwindling employee retention, inefficient inventory management, and failing to reach its true potential.

Department of Commerce Global Competition Analysis

The U.S. Census Bureau provides access to international trade statistics using these first three numbers of the North American Industry Classification System (NAICS). International trade statistics as of May 2011 indicate that the United States imports over $5 billion worth of plastics products from China and only exports a little over $500 million back to China. With this type trade deficit, Riordan Manufacturing may have an uphill battle for market share.

Current Customer Base

The current Riordan Manufacturing customer base is solid, but any change could be the barometer of global competition faced by Riordan Manufacturing. Riordan's current major customers include the U.S. Department of Defense, aircraft manufacturers, automotive parts manufacturers, beverage makers and bottlers. In today's very competitive global environment, no customer may be considered safe, so Riordan must address its performance issues in order to compete effectively in the global marketplace.

Riordan's Current Global Presence Is A Plus

Riordan has established an international global presence by setting up a plant in China. Like many other American companies, Riordan Manufacturing hopes to reduced its production costs by using offshore facilities. This may give Riordan manufacturing a leg-up on global competition.

Internal Problems May Bar Effective Global Competition

Inventory problems, employee retention issues and continuous underachievement also affect Riordan Manufacturing's ability to stave off global competition. Riordan has taken steps to address inventory management issues, as well as trying to increase employee retention. Riordan uses management to close the gap between inventory loss and employee retention. This combination of developments gives Riordan an advantage over other global companies of its kind.

References

About the Author

Timothy Mucciante has worked as a lawyer and business consultant, and has been writing professionally since 1981. His writing has appeared in the "Michigan Bar Journal" and many corporate publications. Mucciante holds both a Bachelor of Arts in political science from Michigan State University and a Juris Doctor from Michigan State University/Detroit College of Law.

Photo Credits

  • Kim Steele/Photodisc/Getty Images