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Case 9 , Stratigic Manegment

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Maha Al rowgi

on 4 April 2013

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Transcript of Case 9 , Stratigic Manegment

Case 9 , Stratigic Manegment From Low Cost to Global Leadership 1- The first company in production of mass market of “ Digital clocks” .

2- One of the companies transform China from traditional

3- Communism economy to Capitalism economy .

4- The 1st chain company to produce medical appliances , timers , & electronic thermostats .

5- ISO in manufacturing Production . General Environment Analysis company Profile & Its analysis Technologically :
Using the Manufacturing Technology to accelerate production through caring for their quality in design , gain flexibility in exporting - importing product and its row materials .

Demographically :
Asian countries encourage the development of Electronics Sectors by concentrating on hiring jobs and generative skills .

Economically :
A powerful controlling hand to be one of the important companies changes China from Communism to Capitalism .

Politacily :
China government policies encourage the establishment of new technological companies in the market .

Globally & Socially :

- Having the owner to develop the Solar Energy Products ( spicaill to military sectors )

- The company conduct customers satisfaction surveys DEGREE OF RIVALRY


-Exit barriers
-Industry concentration
-Industry growth
-Product differences
-Brand identity
-Diversity of rivals Competitor Analysis 1- Mastering high demand for labor and raw materials in south east chain as benefited from cheap labor compared to further inland in China and South East Asia.

2- Customization : having their own products under customers preferences and needs in the market (end - to - end solutions to customers)

3- Concentrated on creating products that were wireless, variable remote controls, human machine interface, sensors, software controls.

4- Training the R&D engineers were leads for working in an environment of regular change.

5- Strong relationship with premium diversified customer base . Internal Analysis
- They confess their success due to instilled values of hard work and teamwork among the employees

- Instilled the discipline in management and raise awareness in the global capital markets. Their Strategies Alternative Evaluation Choice

Differention Strategy Competitors Sony Ericsson
Canon Under Business Level

1- Cost Leadership & Focus low cost
The company came up with a new way of reducing products in Hong Kong actual costs due to cheaper raw materials.

2- Differentiation & Focus Differentiation
Segmentation is done in the markets by expanded geography and started developing solar Energy Products to have advantage of fast growing segments Under Corporate Level

1- Diversification
- The company decided to develop its own intellectual property through R&D’s rather than being strictly and EMS or ODM.

- The company started at a new product line (salus).

-Having their own products ( their logos and tried mark ) by expansion of the Production line by increasing their programmability to increase capabilities. like washing machine timer. 1- Globlization : Focusing on penetrate the existing and new markets by opening up new offices in Europe and Asia (going global) .

2- What role should R&D play in the process of Computime's technological strategy?

- Computime build a new research and developments center (R&D) having the role to get over the OEM’s mentality that challenges for the company , by coming up with new & better innovated products that fits 3E controls .

3- The company produced its online of branded products (salus) in countries like the UK.

4- 3E strategy to focus on technologies that are Environmentally Friendly, Energy Efficient and Easy to use . Group 3

1- Brenda Atoo 1121200085
2- Rita Amini 109120024
3- Sayed ali barzin karoushi 1101600869
4- Lydia Nakazibwe 1121200082
5- Majid bakhtiari 1101600690
6- shizhenan 1121200058 Supervised by :

Dr. Mohd Nor bin Ismail Company Strategic Profile

- In 1997-2002, the Computime Company implemented its first five-year plan. The goal of this strategic plan was to grow the company to US$100 million in revenues.

- Computime Company began its second five-year plan during 2002-2007. Computime want to maintain its margins and grow to a US$300 million , it would need to create its own opportunities by innovating across its core technology platforms. This allow it to create new customer solutions. Computime Company was found in 1974 in Hong Kong, had grown from a small manufacturer of digital clocks to a global electronic controls enterprise. Computime Company was first hit leads to growth and new markets.

-Vision : To become a global leader in design, manufacturing and distribution of electronic controls and energy management products by establishing long-term partnerships based on integrity and ethical business practices.

- Mission : We act as a responsive, flexible and innovative team committed and dedicated to exceed customers' quality, cost, delivery and service expectations. THREAT OF


Barriers to Entry
Absolute cost advantages
Access to inputs
Government policy
Economies of scale
Brand identity SUPPLIER POWER

Supplier concentration
Importance of volume
Differentiation of inputs
Switching costs of firms in the industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in industry Industry Analysis BUYER POWER


Purchasing power of the buyer
Buyer volume
Buyer information
Brand identity
Price sensitivity
Product differentiation
Substitutes available
Buyers' incentives THREAT OF


Switching costs
Buyer inclination to
trade-off of substitutes Implementation

1- Aquisition Strategy : by raising their profit to the final growth under the R&D , controling manufacturing technology , & mastring innovation engaiging process .

2- The company produced its online of branded products (salus) in countries like the UK. .

3- The company added more qualified and experienced staff.

4- Show casing the new product abilities to customers in form of show rooms and product test. Questions & Recommandaion 1- How could computime manage such diverse requirements across multiple industries and remain experts?
- The company can practice a more formal communication and collaboration approach, , by ensuring proper resource managment.

-There should be no discrimination between the workers , regradules thier teamwork should be highly practiced to create a good relationship between the workers. 2- Can computime continue its success transition from contract manufacture to true global manufacturing level to its brand ?

- Yes , they can by getting over the OEM mentality , learn from their mistakes , recognizing that innovation isn`t only have new products , but providing new ways for operating , attracting , retaning them , pleasing their customers with long - term growth . The END Strenghts Weaknesses Opportunities Threats SWOT Analysis - High quality products/services
- Innovative products/services
- Reputation with Strong brand as the biggest contract manufacturer
- First Chinese to introduce appliance timers and electronic thermostats
- ISO certification for manufacturing practices - new intries adding value to their low-cost mass production .
- to found of near-term production for technical objectives .
- not attchiving interoperability standred orgnization. - Available technological innovations
- Export to new markets
- Good financial position
- Growth of the industry of operations
- Market Diversification
- Merger or takeover
- Expand product/service lines
- Expand to other markets - Changing technology
- Competitor's actions
- Increase competition
- Government policies to establishment of new technology company
- Increase raw materials and labor cost
- Internet access restrictions in china
- Commoditized products
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