Read the case below and watch the video and answer the discussion questions
With hundreds of competitors in the boat business, Regal Marine must work to differentiate itself from the flock. As we saw in the
Global Company Profile that opened this chapter, Regal continuously introduce innovative, high-quality new boats. Its differentiation
strategy is reflected in a product line consisting of 22 models.
To maintain this stream of innovative new products, Regal constantly seeks design input from customers, dealers, and consultants.
Design ideas rapidly find themselves in Regal’s styling studio, where Computer Aided Design (CAD) technology speeds the development
process. A Regal design engineer can start with a rough sketch or even just an idea and use the graphic display power of CAD as a
drafting board to construct the geometry of the new boat. The CAD system helps the designer determine engineering data such as the
strength, dimensions, or weight. It also allows the designer to be sure all parts will fit together. Existing boat designs are always
evolving as the company tries to stay stylish and competitive. Moreover, with life cycles so short, a steady stream of new products is
required. A few years ago, the new product was the 3-passenger $11,000 Rush, a small, but powerful boat capable of pulling a water-
skier. The next year, it was a 20-foot inboard-outboard performance boat with so many innovations that it won prize after prize in the
industry. Then it was a redesigned 42-foot Commodore that sleeps six in luxury staterooms. With all these models and innovations, Regal
designers and production personnel are under pressure to respond quickly.
By getting key suppliers on board early and urging them to participate at the design stage, Regal improves both innovations and quality
while speeding product development. Regal finds that the sooner it brings suppliers on board, the faster it can bring new boats to the
market. The first stage in actual production is the creation of the “plug,” a foam-based carving used to make the molds for fiberglass
hulls and decks. Specifications from the CAD system drive the carving process. Once the plug is carved, new boats. the permanent molds
for each new hull and deck design are formed. Molds take about 4-8 weeks to make and are all handmade. Similar molds are made for many
of the other features in Regal boats–from galley and stateroom components to lavatories and steps. Finished molds can be joined and
used to make thousands.
Discussion Questions
1. How does the concept of product life cycle apply to Regal Marine products?
2. What strategy does Regal use to stay competitive?
3. What kind of engineering savings is Regal achieving by using CAD technology rather than traditional drafting techniques?
4. What are the likely benefits of the CAD design technology?
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