Le Petit Chef

1863 Words8 Pages
1 Overview The case study “Le Petit Chef” centers on the issues faced by Brigitte Gagne, the newly appointed director of R&D of the microwave oven division, in the context of the company’s first projected quarterly loss in its ten year history. Specifically, Ms. Gagne has to make an urgent decision on which of all the proposed projects will be funded and, in the longer term, she has to make strategic decisions about Le Petit Chef’s product portfolio and how to regain profitability. At the time of the paper, the company is facing the same challenges as many other companies: how to achieve sustainable growth in a market that is already mature. The firm has to decide which innovation approach it wants to follow. Being a privately held company, Le Petit Chef is not subjected to the same kind of investor pressure as e.g. P&G does but, nonetheless, making money most likely remains the owners’ main objective. However, the company is experiencing difficulties releasing products that differentiate it from the competition despite their comparatively high investment in R&D. The current innovation process is not delivering product “winners” like it did in the past. 2 Market and Competition The market of microwave ovens has become a global market with Europe, Japan and the USA being the largest market regions. US consumers use microwave ovens primarily to reheat food and defrost and therefore tend to prefer products at the low end of the scale with limited features. Europeans on the other hand are looking to utilize the microwave oven to do real cooking. The market is served by a few large corporations based in Europe, the US and Asia and smaller suppliers like Le Petit Chef that target the higher end of the market. Consumers at the high end base their purchasing decision primarily on features and not necessarily on price, which is exactly where the company had

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