Winnebago Case Essay

3255 Words Mar 20th, 2008 14 Pages
Problems
Winnebago has several issues that the company should consider. The company has been experiencing back-logged orders, which could be resulting in customer dissatisfaction and lost sales. Each year the back-logged orders continue to grow. During peak sales times, Winnebago has a difficult time delivering orders at the same rate as the rest of the year.
Increasing gas and diesel prices, along with an uncertain economy are making consumers think twice about spending money on travel and leisure items. Consumers are lacking peace of mind and confidence in the economy and it is affecting sales in the Recreational Vehicle industry. As sales go down, dealers are placing discounts on their current RV inventories. This strategy is helping
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The company is making every attempt to keep its number one status in the motor home industry by continually producing innovative and quality motor homes and has just introduced 4 new models for the coming 2002 model year. Two of these models are Class C models named the Vista and Sunstar, these are unique in that they are the company's first fuel efficient motor homes built on heavy duty front wheel drive chassis. The RV industry is extremely competitive with 12 companies accounting for 80% of total industry sales, Winnebago's primary competitors are Fleetwood Enterprises and Coachmen Industries. In 2001 Fleetwood Enterprises dropped from the number one position in the industry and has built its business on selling recreational vehicles and doing business in the housing sector. Demand began to drop in 2001 for its RV sales and Fleetwood Enterprises was affected drastically because of its lack of foresight, lack of new product development and by having overstocked inventories when it's motor homes were not selling. Fleetwood Enterprises motor home sales dropped 37 percent in 2001 causing them to close two motor home plants. Fleetwood Enterprises has now reorganized its company and put focus on product development, and has also taken steps to create long term customer loyalty.
Winnebago's other top competitor

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