The target market of the Bridgeton Industries included the three main bid automobile manufactures that operated in the United States. These automobile manufacturers had a large percentage of the market share of theUSautomobile market and therefore consumed almost the entire production generated by the automotive component and fabrication plant by Bridgeton Industries. The nature of the business at the Bridgeton Industries was such that a business to business customer/ client model was adopted by the company as the customers of the products manufactured by the Bridgeton Industries were not the end users of the products.
The case presents that the Bridgeton Industries was a highly successful manufacture of components and the automotive component and fabrication plant churned out components and products under the product lines of fuel tanks, exhaust manifolds, doors, mufflers and exhausts as well as oil plans that were entirely purchased by the three big manufactures of the automobiles in the country. However with the advent of the Japanese car manufactures in theUnited States, the company was forced to operate at reduced costs in order to be effici9nt and appeal to the changing markets. Despite the changes that were made to control the costs and stream line operations in the plant, the automotive component and fabrication plant was shut down as it was reporting incrementally increasing overhead levels that could not be contained regardless of the effort put into managing the overheads. This case analysis how the company fared and what initiatives could have been taken to better manage the overheads to reduce costs and make the automotive component and fabrication plant more cost effective.