GEMINI ELECTRONICS Harvard Case Solution & Analysis

GEMINI ELECTRONICS Case Solution

Problem Statement

The case describe the issues for the founder of the company to maintain its existing position as a shareholder which seems doubtful in the case if the company does not undertake any rapid changes to cater the market share.

Qualitative Analysis

In order to analyze the qualitative position of the company, its overall performance historically as well as the current position are analyzed. It can be seen from the financial statement that the sales revenues of the company is growing quite rapid which reveals that the management is efficient and is employing its significant efforts in the best interest of its shareholders. But due to the recession, the company was unable to achieve the required performance in the year 2009. In addition to this, from the financial statements it can also be seen that the management is efficient in cutting its overall cost which is evident from the growing trend in the net income of the company.

SWOT Analysis

The major strength of the company lies in its strong relationship with its customers which helps the management of the company to gain the first hand knowledge to the real demands of the customers, moreover it also helps in gaining the feedback on the overall performance of the company. With the help of this feature, the company tries to capture a larger number of customers with a high degree of accuracy and flexibility. The other strength of the company lies in its adoption of Just-in-Time facility for the production which results in significant cost savings of the company, moreover it can be seen that the inventory carrying out cost in this particular business is high because of the threat of getting obsolete, therefore, the Just-In-Time production facility can provide greater benefits for the company.

As far as the weaknesses are concerned, it can be seen that the company has a significant over dependence on the market in United States which could problems in the circumstances of market uncertainty and the further slowdown, all of these issues could cause the sales of the company to be dropped significantly. In addition to this, the strong brand image in the eyes of customers and a competitive edge in the industry could also weaken. The other weakness of the company includes the adoption of its pricing strategies from the other competitors which are causing a decline in the sales of the company. In addition, the company also lacks efficient distribution resources and in proper marketing channels which are causing significant competition from the others in the market.

As far as the opportunities are concerned, it can be seen that the company has the expansion as well as the growth opportunities with which it can be able to increase its sales revenues significantly. With the help of maintaining a good relationship with the strong distribution channel partner, the company can promote its products in the market efficiently.

The major threat of the company is caused due to the rapid enhancement in the technology sector which could make its existing products obsolete and could results in the declining performance of the company. Moreover, significant threats from the competitors are also causing issues in the short run.

Current position

Currently there is recession and it is expected that company will also get affected as evident from last year figures. The company has realized its need to run heavy advertisement campaigns to make public aware of the company and its products this might cause increase in sales.

Moreover the company has expected some future uncertainties and has taken relative measure steps for this. It is feared that the competitors might goes into price fight to capture the higher market share and for this Gemini has been in policy of maintaining higher liquidity and cash balance to survive successfully in the expected situation........................

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