Erie Company Analysis 1
Erie Company Analysis
Hailey Butterfield
Bellevue University
MBA 500 Business Performance Management
Erie Company Analysis 2
Introduction
The Erie Company is a low-tech cost leader with a vision statement that states, “For cost
conscious customers – Erie brands offer the best value. Our primary stakeholders are bondholders,
stockholders, customers, and management” (Foundation Niche Cost Leader). This company was used in
a simulation through many sections including Research and Development costs (R&D), Marketing,
Production, and Finance. The goal of this simulation was to keep Research and Development costs,
production costs, and raw materials cost as low as possible in order to compete on the basis of price.
While our products keep pace with the market, offering improved size and performance. The company
puts their price below average in order to improve margins and keep up with the competition. These
simulation are extremely helpful because it shows us the cause and effect of different areas of the
business models and what can happen if we change any part of the production. This also helps us as
