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UFO - Infrared Heaters Producer Slide Index 1. UFO Company Story 2. SWOT case of Ufo 3. Milestone of Ufo 4. Population of companies in heating sector 5. Competing with late entering companies. 6. Surviving and Competing strategies of Ufo. 7. Isomorphism around Ufo. 8. Probability of Organizational decline of Ufo. Mustafa Dişci/Fatih University

Ufo Kızılötesi Isıtıcı Markası

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Organizational Tranfsormation of Ufo Heaters.

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Page 1: Ufo Kızılötesi Isıtıcı Markası

UFO - Infrared Heaters Producer

Slide Index

1. UFO Company Story2. SWOT case of Ufo3. Milestone of Ufo4. Population of companies in heating sector5. Competing with late entering companies.6. Surviving and Competing strategies of Ufo.7. Isomorphism around Ufo.8. Probability of Organizational decline of Ufo.9. Ufos’ growth on Greiners’ model.10. References

Mustafa Dişci/Fatih University

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UFO GROUP HAS STARTED İTS FİRST COMMERCİAL ACTİVİTY THİRTY

YEARS AGO,AS NNR ELECTRICS, İN ISTANBUL, TURKEY. IN 1998 İT

HAS STARTED PRODUCİNG IR HEATİNG ELEMENTS WİTH A SPECİAL

WİRE WOUND, WHİCH WAS DESİGNED AND DEVELOPED İN HOUSE,

AND İNTRODUCED THESE ELECTRİC HEATERS TO THE CUSTOMER

UNDER UFO BRAND.

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Organizational Birth of UFO

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4 Brothers’(Mustafa, Adem, Mehmet and Abdullah

Yeşil) project in a 30 years old company in 1998 - İSTANBUL

Totaly 10 Employees in production line and sales department

A new product: UFO/Infrared Heater

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SWOT Analysis of UFO

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Strengths of Ufo : Economic, efficient, ecologic product, Heating in short time(27 sec.)

Weaknesses of Ufo : New area, new product, never used way for heating.

Opportunities for Ufo: Best heating way for open and wide areas.

Threats for Ufo: Liability of newness, immitability product, ‘Quartz Heaters’ are well in the market.

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MileStones of UFO

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1998: Organizational Birth of producer company is realised. R&D works had start up. NNR Electric started to produce infrared heaters.

1999: NNRbecame a mark Leader in Turkey(Heating Factories)

2000: NNR became a mark Leader in Russia (Heating Factories)

2002: UFO mark has borned for houses by NNR Electric. 2004: UFO is the number 1 infrared heater in Turkey and

other countries. 2005: Many immitations of UFO has started to produce. 2007: New UFO Plant in Hadımköy/ISTANBUL started to

produce. 400-700 employees, 12.000 m2 factory & total 20.000 m2 plant area Producing 1.500.000 heaters in a year

2008: UFO produced ionizer vantilators for summer market. 2009: UFO reached % 80 of infrared heater market.

and 90.000.000$ endorsement/year realised.

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Population Density of Companies in Heating with Infrared

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Competing With New Companies

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There are many companies in the infrared heater sector today.

2 years ago, there was 90 alternative (immitations) were competing against Ufo.

With the “first mover advantege” (in

Population Ecology Model), Ufo has just 15 alternatives today. Other 75 competitors couldn’t live with “Natural Selection”(in Population Ecology Model).

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Surviving and Competing Strategies of UFO

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in 2005

Most Competitors of UFO in 2005-06 (total

90)

Biggest Competitors of UFO today (5-10)

in 1998

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Isomorphism arround UFO

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Coercive isomorphism Most seen isomorphism in infrared heaters sector,

becouse the technical mantality is same.

Mimetic isomorphism Becouse of UFOs’ leadership and first-mover position in the

sector, UFO is the most immitable company.

Normative isomorphism UFO is a family company. 4 brothers are sharing

engineering and management positions. With the advantage of this, UFO doesn’t lose know-how. Also, with the first-mover advantage, the most experienced managers is working in UFO Group. No need to share training.

ISOMORPHISM:Similarity of products and companies in the same sector. Biggest disadvantage of isomorphism is, kills innovation.

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UFOs’ Growth on Greiner’s Model

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UFO1999

UFO2005

UFO2009

???

???

???

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Probability of Organizational Decline of UFO

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Weitzel and Jonsson’s Model of Organizational Decline

o Stage 1: Blinded: The shareholders of UFO, which are active

managers today, may not see the threats arround the mark.

o Stage 2: Inaction: Stoping innovation, R &D working

o Stage 3: Faulty action: Managers may have made the wrong

decisions because of conflict in the top-management

team(after delegation of 4 brothers’ management activities)

o Stage 4: Crisis: Time of the radical changes in company may come.

(eg. Changing the shareholders, changing the main product, moving from

Turkey/Istanbul, etc… )

o Stage 5: Dissolution: Death may be irreversible.

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References

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Prentice Hall,www.prenticehall.com

UFO Company,www.ufotr.com

ATO (Ankara Chamber of Commerce)

www.atonet.org.tr

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11-13Mustafa Disci - Fatih University -2010

[ THANKS ]It seems that, UFO has more time to

live and more way to go.