Arrow Electronics Solution Harvard Case Solution & Analysis

  • Managing the Relationship with Suppliers

Design win is the preference based system.  To gain the interest of its customers and suppliers, Arrow Electronics, like other distributors, raises the demand by helping the engineers of potential customers end those Products to which its suppliers’ chips were essential. Suppliers usually track the distributor who is responsible for design work by assigning some specific numbers to the relevant distributor-customer partnerships.  On the other hand the customers who actually purchased on the basis of manufacturer own reputation or price and did not include a distributor in any sort of design work were termed as “jump balls” in the business environment. To maintain excellent and deep relationship for these customers, suppliers offered all distributors the similar margin, which was ominously less than that which would be accessible in the case of a design win situation. To gain the best interest and market share in this regard, this Express’s internet based trading system can play an enormous role because it enables the distributor to post a variety of inventory and desired prices on the bulletin board which allows customers to select the best possible option for them.


There promotions are widely based on the simple agenda that is connecting customers with the exact technology at the exact place at the exact time and at the accurate price. They have been doing their promotions on a B2B basis to keep the brand name active across the industry.

Swot Analysis


  • Huge product range – one of the broadest in its segment
  • High global existence – in about 80 countries and territories
  •  Strong employee base, of about 16,000 employees globally
  •  The customer base  is vast– caters to over 1,00,000 customers across globally
  • It is one of the most well reputed electronics companies in the US

Arrow Electronics possesses a number of strengths which help them in adding the value to its vision. They have an excellent presence across the globe within 80 countries. As far as the element of internet based trading system is concerned, it can be resisted by adding some extraordinary value services and even through price penetration strategy. There is no doubt that they are having excellent and well established brand name. The internet based trading system might require their help for future growth. Vast customer base is  real potential for Arrow Electronics which should be reduced at any cost, so to avoid possible losses from the internet based tracking system they need to plan aggressive strategies (Mentzer, 2001).


  • Arrow mainly relies on the demand of its diversified products and services initiated from the semiconductor industry
  • The sale of its main products is cyclical this means they marked periods of boom and slump
  • Declining financial performance sometime – with net profits dropping is a slight concern

These weaknesses can be converted into serious threats because globally, companies are expanding their business. Moreover, the additional moves like internet based trading system can use the weakness to grow their business which can be destructive for Arrow Electronics. Declining financial performance some time might create issues, but at this moment they are well sound in terms of sales volume growth.


  • Elevated focus on inorganic growth – through acquisitions and mergers enables the company to leverage on the strengths of the companies it attains, some of which are –Global Link Technology and Redemtech
  •  Latest distribution tie-ups, helping to boost penetration in newer areas.
  • Arrow can sign a distribution agreements with other massive companies may be a wireless services provider or firms specializing in the machine-to-machine (M2M) communications and distribution market
  • Latest technology
  • Innovative Products

If the strategy is perfect, so there are excellent opportunities for Arrow Electronics to expand in this regard. An excellent innovation and the latest technology can help them in building their own future. It is highly recommended for Arrow Electronics to grow by acquiring and merging with different companies. Moreover, it is highly recommended that to avoid possible threat from internet based trading system, they must align their distribution network because by doing this they won’t leave any space for such online trading.


  • Strong competition, particularly with respect to franchises, prices and product availability
  • Stringent laws that need to be complied with among them-
  • An EU constraint on the make use of certain dangerous substances and waste electrical and electronic equipment directions, the EU reach (chemical registration) directive, the China law on management techniques for controlling pollution by electronic information Products, and a variety of other laws
  • Main revenues are generated from worldwide businesses, this poses a threat as global fluctuations will to a great extent impact the company
  • Internet based trading system............................

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