Hurco Essay Example | Topics and Well Written Essays - 750 words

Hurco - Essay Example Hurco Inc. specializes in providing customized automated programs to the metal industry. Their products cover interactive personal computer (PC) based control systems and software to aide their machine tools (â€Å"Investors – Corporate Profile†). On the other hand, as other market players, Hurco also offers sale and aftersale service. It is important to note that where other firms in the IT industry offer products compatible with the tools and machinery used by their customers, Hurco Inc. has a primary product line comprising machinery tools meant for the metal industry, and software as a peripheral product. Their products are meant to enhance productivity and efficiency in the operations of their customers by introducing user-friendly automation. Their core competency comprises specialization in microprocessor technology and software meant for machines tools used in the metal industry. In addition, interactive programmable software patented by Hurco allows users of th eir programs to produce peripheral software that can be either made part of an actual program through blueprints or computer-aided design and ensure speedy production processes without interruption, with maximum efficiency in operations (â€Å"Investors – Corporate Profile†). ... Due to customization available according to customer’s needs, Hurco is able to cater customers all around the globe. However, they have solely focused on the metal parts industry, which makes them a niche player. Hurco’s strengths and weaknesses along with industry attractiveness can be analyzed with the help of Porter’s five forces analysis. It is important to note that Hurco’s product line comprises machine tools that are considered as capital products or goods. The cyclic nature of the industry makes manufacturers in it highly vulnerable to market changes (Hurco Inc. 2). For supplies, Hurco relies on foreign suppliers and also their own subsidiary (Hurco Inc. 24). Presence of a fully-owned subsidiary makes them less susceptible to delays that can be caused by failure of other suppliers to meet the deadline. On the other hand, buyer’s power leaves Hurco vulnerable. It is important to note that the metal tools industry is greatly dependent on econo mic conditions prevailing in the industry. Therefore, limited buyer’s purchasing power also leaves Hurco to reduce its profit margins. Hurco also faces tough competition in the industry of machine tools. There are quite a few major competitors in United States and many in other countries that have better resources and a bigger capacity of utilizing economies of scale, which makes them capable of providing products that are cheaper than Hurco’s (Hurco Inc. 7). A threat of new entrants will always be faced by Hurco, as any other manufacturer. Although Hurco has patented its programs, there are a large number of IT firms that can provide automated solutions to companies using manually operated machines such as the ones provided by Hurco, without any major