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However I have been asked to express my opinion based around three fundamental questions: What are the firm’s distinctive competencies? Is there evidence that the firm earns rents, and innovates? Do opportunities to improve in any functional area exist? A competitive analysis is a statement of the business strategy and how it relates to the competition. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within one’s market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering the market, and any weaknesses that can be exploited within the product development cycle. When analyzing Koetter Woodworking to observe their distinctive competencies, first and foremost would be their efficiency. With more than 6 acres under one roof, the Koetter Woodworking rough mill is unequaled in the industry. It is amazing how Koetter’s rough mill transforms logs to beautiful trims and moldings, with not a speck of sawdust wasted. Their 900-kilowatt per hour co-generation plant supplies electricity by burning sawdust from the manufacturing plant. This is environment-friendly technology that is second-to-none. Forty-two tons of sawdust from the manufacturing process is burned to create electricity to power the plant everyday. In addition to producing electricity, the boiler generates heat used in the kilns during the wood-drying process. It is also the source for the heat pipes under their sidewalks that melts ice and snow during the winter months. This amazing technology puts Koetter in a field of their own, giving their competitors a run for their money, but the alarming thing is, they are very open about how they are so efficient. They share the entire process with the public, therefore, being readily available to their competitors as well. According to theory, the performance of a company within a market is directly related to the possession of key assets and skills. Therefore, an analysis of strong performers should reveal the causes behind such a successful track record. This analysis, in conjunction with an examination of unsuccessful companies and the reasons behind their failure, should provide a good idea of just what key assets and skills are needed to be successful within a given industry and market segment. Koetter Woodworking took the first step in identifying their distinctive competencies by doing a competitor analysis to identify the current and potential competition. To my understanding, they could have done this two ways, the first being that they looked at the market from the customer’s viewpoint and grouped their competitors by the degree to which they contend for the buyer’s dollar. The second method is to group competitors according their various competitive strategies so they could understand what motivates them. Once they grouped their competitors, they could analyze their strategies and identify the areas where they are most vulnerable. This could have been done through and examination of their competitor’s strengths and weaknesses, which are usually based on the presence and absence of key assets and skills needed to compete in the market. Koetter Woodworking found their distinct advantage while managing to be environmentally sound, leaving competitors behind. Since Koetter Woodworking is a family owned and operated business, I would speculate the earning of rents to exist. I say this because, the business itself seems to be substantially flourishing, and of course the Forest Discovery Center has been built, and is being funded by some means of income. Since Koetter Woodworking is, basically, a mill, one can easily say they innovate by default. They turn trees into beautiful doors, trims, and moldings, basically anything that can be done with wood. Every product is the result of innovation, and new combinations are always the outcome. Also, it requires a substantial amount of money in order for a firm or company to expand, which in Koetter’s case, must come primarily from profits since it is a non-stock venture. They disclosed themselves that they finance through banks and internal cash flow, with a 10-12% expected yearly growth. Koetter Woodworking currently consists of three plants (Starlight, IN, Jeffersonville, IN, and Somerset, KY). They currently have approximately four hundred seventy employees, with five outside and ten inside sales reps. As far as recommendations on improving in any fundamental area, it is difficult for me as an amateur on the subject; yet, I see the company from a non-bias, non-partial perspective. Currently, Koetter Woodworking is on a constant pace of upgrading, by developing a high-tech communications system. They are trying to put better performance measures to the test. However, they do not market their products in a direct fashion. They sell their products to lumberyards and cabinet-makers. I believe they should sell their products to hardware stores and the alike. By marketing their products, their name may one day become a household name throughout the state, the country, and eventually even on a global scale. In conclusion, one can understand that a career as an entrepreneur is an opportunity of self-employment and self-reliance, where a confident and qualified individual can venture out to be a master of him and his life. It is a field where an individual either on his own or in partnership with others starts ventures of his clear vision, of the direction to be taken both for the activities as well as to guide the people working under. With new industry policy, there has come tremendous scope for willing entrepreneurs. The expanding vistas and opening up of new horizons could be the beginning of a totally new life for such venturists. However, it must be understood that it demands a meaningful hard work, the ability to manage depth of insight, a visionary outlook, and good and quick decision-making and communication skills. One must have the ability to lead from the front and take responsibility, while being able to accept failure and take risks. Once this task is accomplished, then any individual with clarity of vision, sense of direction and meaning can emulate them over time, such as the Koetter family has done. Bibliography: Smith, Mark A., "Venture Capitalism, New York, 1999. Word Count: 1062
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