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Strategic analysis Please read a study case (text attached) and answer 3 question. - Essay Example
Author : vschaden
Pages 3 (753 words)
HARDCO COMPUTERS Name Institution Subject Date HardCo Computers In order for HardCo computers to strategically position its self to enjoy the windfall from computer hardware tech sales in the region, it is practical that it re-organizes its operational environment and mode of doing business in order to remain profitable and maintain an upward growth impetus…
Some of the inherent operational bottlenecks include; overconcentration on Personal computers manufacturing at the expense of laptops and tablets, lack of brand structure, inadequate use of online marketing and business and a disproportionate allocation of the labor force. These issues are well proven by the statistical analysis shown. The firm’s main profits are gained from the sale of P.C, although the global demand for the products has decreased. Specifically, the company’s average profit per P.C has declined by 400% and sales per unit by 200% .On the other hand, sale per laptop has declined by 25% while volumes have declined by 33%. Therefore, the drop in profits is contributed immensely by the disappointing figures from the sale of desktop computers, which the business greatly relies on. It would be very advisable that the company scales down on production of P.C’s in favor of laptops and android operating computers like tablets that are proven to be gaining rising popularity. With an increasing investment in the tablets, the company will consequently grow its productive rate and benefit from large sales that will increase its bottom line through economies of scale. The benefits of economies of scale shall push up its profit stake from the 10% it currently earns per unit of a tablet it earns from the source. ...