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Comtec Corporatio
n
Case Presentation
Microcomputers and specific software
January 1984
Difficult time in domestic and international market
Localisation
Names and Positions
Dr Daniel NeedhamPresident
Mr Harry OttoVice-President
Ms Roberta MalcolmOutside Computer
Consultant
Mr Max MendelSales Manager in
Amsterdam
Synopsis of exhibits
July August September October November December0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
DomesticInternational
Net Operating Working Capital = (Cash + Accounts Receivable + Inventories) - ( Accounts Payable + Accrued Expenses) = (44 190 + 251 340 + 233 244) – (473 518) = 55 256
Working capital = Current assets – Current liabilities = 539 530 – 527 700 = 11 830
o Net cash = Net Operating Working Capital – Working Capital
= 55 256 - 11 830 = 43 426
Advertising• Heavy reliance on
jounal advertising and press releasesStrengths
• Wrong target• No trade show• No direct mail
Weaknesses
International• Presence both in
Europe and US Strengths
• Low turnover• Costing > producing
Weaknesses
Product• Ultra high-speed and
multitasking microcomputers Strengths
• Expensive
Weaknesses
Management• Hire an outside
experienced consultantStrengths
• The president doesn’t take decisions
Weaknesses
Malcolm’s point of viewClose down the European office and
concentrate on the US market
Shift from Hardware to Software and produce IBM compatible software
Shift from heavy reliance on journal advertising and press releases to direct mail advertising and trade show exhibits
Otto’s point of view
Marketing not agressive enough
Orders are coming
New targeted fields are not quick sells
#1: Status quo
- Give the chance to the order for 10 Comtecs plus software to success- Let the inquiries turn into orders- Not taking risk with prematures and bold decisions
+- Loss of money- « Long-term waiting game »- Orders may not be realized
-
#2: Closing down the European office in Amsterdam
- Concentrating only on the US market- Reduce losse
+ - European orders will not be satisfied - Less consumers- Bad reputation
-
#3: Shift from hardware to a software emphasis
- A new market- Producing software for a well-known company
+ - Loss of the hardware market- Change costs money- Big risk
-
#4: Shift from heavy reliance on journal advertising and press releases to direct mail advertising and trade show exhibits
- Target audience more informed- Turnover increasing
+ - Costs money- Shock regular consumer - Intrusive approch
-
#5: Merge with another company
- A new market with many clients- More ressources
+- Loss of freedom and independance
-
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