Tantalum wire product development strategy : gaining a competitive advantage in a commodity market

Abstract

In the face of growing competition and the commoditization in the Tantalum Wire business, H.C. Starck must find a way to differentiate their wire products from competitors in order to survive in this market. This thesis studies the possibility of developing a new product into the market by launching a product development process, with the goal of gaining a competitive advantage and sustaining it, thus increasing profitability over time. For this purpose a decision support model was developed to analyze the economical and operational feasibility of a new product. All aspects of launching a new product development process in H.C. Starck Wire department were modeled to simulate uncertainties across the Tantalum supply-chain, and recommendations were drawn based on results. A number of goals were addressed in this study: First, a robust link was created between the scientific potential and the economical potential of a new wire development. Second, a recommended strategy was defined for H.C.Starck Wire department in order to differentiate their products in lieu of low cost competition.