Mejzlík Modellbau: Seeking Directions to Fly High
(4 pages of text)
Since its founding in 1989, Mejzlík Modellbau, a propeller manufacturing company based in the Czech Republic, had gained high visibility in the remote-controlled plane market. It had achieved a strong position by maintaining product quality and providing excellent customer service. The company had a strong cash position and an excellent credit rating; however, by mid-2018, the market for remote-controlled planes was reaching its saturation stage, as evidenced by Mejzlík Modellbau’s declining profits. If the company continued to rely solely on the remote-controlled plane market, it might soon face bankruptcy. The founder decided to explore various other markets wherein he could utilize his expertise of making high-quality carbon fibre propellers. But how would he strategically determine which market to pursue?
The case study has been designed for graduate-level courses such as organic growth strategies, strategic management, and innovative business models. The case can also be used for undergraduate students to introduce the concept of organic growth for small- and medium-sized companies. In addition, the case study can also be taught in finance-related courses in a discussion of financial scenario analysis. After reading and analyzing the case, students should be able to undertake the following:
- Understand various growth challenges faced by small- and medium-sized firms and how to handle these challenges amid financial constraints.
- Analyze different approaches in order to explore the potential market and achieve organic growth for the company.
- Compare and contrast various organic growth options and understand how to strategically select the best possible option.
- Analyze the feasibility of different growth options financially and consider how to mitigate any adverse effects in order to gain maximum benefits.
Czech Republic, Small, 2018
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