Great computers Case Study Solution
Introduction:
After the economic downturn of 2009, the global economy is recovering from this recession with income rates increasing and unemployment rates at the lowest level of the decade. Additionally, the demands for consumer electric need a regrowing at a rapid pace.
The need of high technological computers, desktop, laptops, and mobiles are increasing at a great rate, especially in a developed country where many businesses want these high quality networks to fulfill their requirements of activities. However, this positive increase in demands is offset by growth in competition. All the high-tech equipment producers are competing on just prices and small profits to gain maximum market share along with the minimum product differentiations. Many producers just adopted strategies which include increasing expenditure on research and development to (or “intending to”) differentiate their products from the competitor’s products,relocating manufacturing sites to accomodate cheap labor providing companies and reducing the overheads.
Great Computers is also suffering from this difficult trading condition but is a significant player in the technological market of North America and Asia. Great Computer’s brand is highly recognized in the professional market and is considered to be the manufacturer of medium and high-quality computers with an average price. The company is ruled by the CEO who spends his time in Asia and America equally to avail the opportunity from both the markets.
The entrance of China in the technological market has also affected the business of Great Computers; the declining profits also contribute to the concern of management. The distributors are also giving weak orders as compared to the past orders due to the low-cost computers which the Chinese market is offering. To deal with this situation GC is considering acquiring a Chinese company which produces high-quality smart phones and the other option is to acquire Euro Dist which whole sales a great number of electronics throughout the Europe.
Problem Statement:
Great Computers is facing many challenges in trading which mainly includes the reduction in profits and revenue due to increasing competition in the technological market.
SWOT Analysis:
Strengths:
The first advantage of Great Computers is that it has an adamant brand image, normally the consumers in the technological market are very conservative and critical of the brand image, and are reluctant to purchase the computer of an unknown brand. Great computers can maximize the benefits from this strength by acquiring more consumers, but for this, they have to offer the price at which the smaller and unknown brands are offering.
The second advantage of Great Computers is the expertise which are associated with it, The Chief Executive Officer Mr. Frank Paul son is also a very competent person who has the ability to turn around the results of the company.
It is evident from the case study that Great Computers have an online sales system which provides customers the opportunity to buy the systems online. However, the sales from the online system were just 17%. In the technological environment, it is very critical for the organization to have a robust online sales system though it appears that Great Computers have the system but they have to give more attention to this segment to increase the sales of this system.
Great Computers is considered to be the key player in the technological market. It can be assumed that it has a significant amount of financial reserves available. These financial reserves can also be used to increase the efficiency of research and development department which could increase the market share of Great Computers in future. Also, due to the high brand recognition, it is possible that it could quickly raise new finance by issuing equity or debt frequently the names which have the least appreciation in the market. It might be tough to obtain additional funding because the finance provider might not trust the smaller brand or if the brand can get new finance then it might be possible that it gets the new investment at a higher rate.
GREAT COMPUTERS Harvard Case Solution & Analysis
It is mentioned in the case study scenario that there is a significant interaction between the departments and regions of the Great Computers. Great communication is termed as necessary for the survival of the organization in the modern days. If the agencies did not communicate properly, the growth of the organization might be too difficult in this case, it is not just that communication is enough but the communication should be on a timely basis so that it can benefit the organization in the proper manner.Also, the communication process plays a vital role in the assessment of the performance of the heads of different regions and departments...............
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