Great Computers Harvard Case Solution & Analysis

Introduction:

After the economic downturn of 2009, the global economy is recovering from this recession with income ratesincreasing and unemployment rates at thelowest level of the decade. Additionally, the demandsfor consumer electric needaregrowing at a rapid pace.

The need of high technological computers, desktop, laptops, and mobiles are increasing at a great rate, especially in adeveloped country where many businesses want these highqualitynetworks to fulfill their requirements of activities. However, this positive increase in demands is offset by growth in competition. All the high-techequipment 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 includeincreasing expenditure on research and development to (or “intending to”) differentiate their products from the competitor’s products,relocating manufacturing sites toaccomodate cheap labor providing companies and reducing the overheads.

Great Computers is also suffering from this difficult trading condition but is asignificant 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-qualitycomputers 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 GreatComputers; 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-qualitysmartphones and the other option is to acquire EuroDist which wholesalesa great number ofelectronics throughout the Europe.

Great Computers Harvard Case Solution & Analysis

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 anadamant 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. Greatcomputers 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 Paulson 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 theonline system were just 17%. In the technological environment, it is very critical for the organization to have a robust online sales system thoughitappears that Great Computers have the system but they have to give more attention to this segment to increase the sales of this system......................

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