Topic > Strategic Management: Epsen Hillmer Graphics - 1061

Keeping up with technology can be difficult for any business, but especially those that are unsure of their future. Maintaining technology amidst great competition may be the only way a company can survive. Evaluation of Epsen Hillmer Graphic's external environment, including both competitive and general contextual factors (Pearce-Robinson, 2004), shows that the company needs to take advantage of advanced printing methods. Computerized plateless printing will allow Epsen Hillmer to produce labels with fewer color variations, shorter lead times and lower overall costs. Background Epsen Hillmer Graphics, once a leader in the label printing industry, must find a way to regain a presence in its home market. Currently, they are struggling to remain competitive with other private label manufacturers, the top five each generating total label sales of at least $100 million (Freedonia, 2000). Epsen Hillmer Graphics is in trouble after the Litho Union strike and subsequent sale of its lithographic division. Epsen Hillmer must leverage the best technologies in the label printing industry. The company currently provides lithographic, flexographic, letterpress, screen and plate printing services combined with varnishing and lamination capabilities to meet the needs of its existing custom label customer base. Litho printed labels are found on juice bottles such as Apple Tree and Langer's Juices. Flexographic printing is often used to print simple labels such as meat, bakery and deli labels; EHG has many of these labels. Letterpress printing is used in a large amount of four-color (4CP) jobs, including Campbell's Foodservice labels, Dannon Whips labels and Seminis Seed labels. Screen printing is often used on shampoo products, such as Alberto-Culver labels, to make the label stand out. These are all plate printing methods, often used to reduce overall costs for the customer; however, plates wear and break and require maintenance to achieve the best printing capabilities. As the plates deteriorate, greater color variations can occur in the labels, which makes customers dissatisfied because these labels are the image of their product. The steps to prepare a plate job for printing can be time-consuming, which can be detrimental to Epsen Hillmer Graphics because many customers work just-in-time (JIT) and do not allow for a 3-hour turnaround time. 4 weeks before labels are shipped. Problem Definition Epsen Hillmer Graphics (EHG) is facing many business problems and will most likely not survive if it cannot meet customer demands through the use of better technology.