Needs 21st-Century Business Model, Anonymous Source Says
An anonymous source, who wished to remain unnamed for fear of reprisal,
told glassBYTEs.comô/AGRR magazine that he thinks Diamond
Glass' business model is what caused the company to reach the point
of filing for Chapter 11.
"The [Diamond] business model came from 1980s and 1990s," he says.
"The model's based upon doing the work cheaper than anyone else,
paying your people a little more, stealing your employees from other
companies and paying them a little bit more and selling your products
for a lot less."
He adds that what he sees as today's business model might have
helped the company to fare better in recent years.
"The 21st-century business model includes a benefits package, a
proficient employee base, a solid niche of attractive retail stores
and mobile units," he says. "It's based on earning the customer's
business-not by buying it."
He notes, though, that even if the company's buyer has an improved
business model in its plans, the right people are still needed to
make the model work.
"Getting people to believe in a believe in [a new model] is totally
different," he says.
And what if Belron were to make a bidand win the purchase
of the company? (CLICK
HERE for related story.) This particular representative questions
whether this is even a possibility.
"I don't know why Belron would want it," he says. "[Belron] has
beaten [Diamond] where it counts."
Another industry representative, who also spoke on the condition
of anonymity, questioned the competition that would be left were
such a transaction to take place.
"If you believe competition is good, you wouldn't like this move,"
he says. "This is really something that would challenge the industry."
He also noted that it would have just as much of an effect on insurance
carriers as it would retailers.
"At the end of the day, they're trying to deprive the marketplace
of competition," he adds.
What do you think about the Diamond bankruptcy and the potential
purchase of the company by Belron? Please e-mail glassBYTEs.comô/AGRR
magazine at email@example.com.
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