Problem and Solution:
DigiMaxCon(DMC) is a unique and innovative company that has a spot in the semi-conductor and electronic communication market, but is not taking full advantage of it due to their lack of execution and innovation in their business and corporate level strategies. DMC had a net income loss of a billion dollars in 2012 and an income loss of $800 million from 2008 to 2012. On paper those numbers look bad, but they also had positive net incomes in 2010 and 2011. DMC’s main problem is their inability to maintain constant growth. This stems from having too broad of a target market, lack of supply chain control, and corporate structure. Their problem does not lie in their current business goal but does lie in their strategy. …show more content…
Controlling that price will effect the price consumers get from the VAR. DMC wants the price of products, that consumers get from the VAR, to go up because it will help them create a spot in the consumer and business customer market.
Ultimately, DMC’s supply chain strategy is the expansion into the wholesale distributor channel and the reduction of sales to retailers. This strategy will enable DMC to expand their target market into the consumer and business customer channel. E-commerce will be the main source of sales to consumers. Having a solid online presence will involve each department in the company to create individual strategies that will achieve the overall goal.
Recommendation 3: Global Strategy The business and corporate level strategies will be implemented in the short term. DMC’s global strategy will be in the long run and eventually create product innovation. Although DMC has maintained a U.S. presence their whole lifespan, they need to acquire manufacture facilities in foreign areas. This will help lower manufacturing cost, in the long run, and give them more opportunity to sell …show more content…
Supply chain needs to coordinate with manufacturing on how to produce enough products that wholesale distributors will buy. DMC will maintain their current prices but still expand their current market. The VARS are very price sensitive and cannot fill out all their potential orders due to irregular demand. VAR blame the customer segment having irregular demand cycles. This is all due to the starting price in the supply chain. DMC starts at the beginning of the supply chain, which allows them to maintain a consistent demand to the customer segment.
Implementation of Recommendation 3: In the next five to seven years DMC should acquire a FAB, where they can operate and manufacture outside the U.S. Asia would be the best fit due to the cheap labor and growing market. R&D will be the main part in acquiring a new manufacture center. They should be looking for a smaller semiconductor company who manufactures abilities fits the overall goal of DMC. The potential company should have a good foothold in the Asian market. Once acquired DMC can grow globally grow their brand, which will translate into a larger market share.
Analysis of Recommendation 1: Cohesive Business
DigiMaxCon(DMC) is a unique and innovative company that has a spot in the semi-conductor and electronic communication market, but is not taking full advantage of it due to their lack of execution and innovation in their business and corporate level strategies. DMC had a net income loss of a billion dollars in 2012 and an income loss of $800 million from 2008 to 2012. On paper those numbers look bad, but they also had positive net incomes in 2010 and 2011. DMC’s main problem is their inability to maintain constant growth. This stems from having too broad of a target market, lack of supply chain control, and corporate structure. Their problem does not lie in their current business goal but does lie in their strategy. …show more content…
Controlling that price will effect the price consumers get from the VAR. DMC wants the price of products, that consumers get from the VAR, to go up because it will help them create a spot in the consumer and business customer market.
Ultimately, DMC’s supply chain strategy is the expansion into the wholesale distributor channel and the reduction of sales to retailers. This strategy will enable DMC to expand their target market into the consumer and business customer channel. E-commerce will be the main source of sales to consumers. Having a solid online presence will involve each department in the company to create individual strategies that will achieve the overall goal.
Recommendation 3: Global Strategy The business and corporate level strategies will be implemented in the short term. DMC’s global strategy will be in the long run and eventually create product innovation. Although DMC has maintained a U.S. presence their whole lifespan, they need to acquire manufacture facilities in foreign areas. This will help lower manufacturing cost, in the long run, and give them more opportunity to sell …show more content…
Supply chain needs to coordinate with manufacturing on how to produce enough products that wholesale distributors will buy. DMC will maintain their current prices but still expand their current market. The VARS are very price sensitive and cannot fill out all their potential orders due to irregular demand. VAR blame the customer segment having irregular demand cycles. This is all due to the starting price in the supply chain. DMC starts at the beginning of the supply chain, which allows them to maintain a consistent demand to the customer segment.
Implementation of Recommendation 3: In the next five to seven years DMC should acquire a FAB, where they can operate and manufacture outside the U.S. Asia would be the best fit due to the cheap labor and growing market. R&D will be the main part in acquiring a new manufacture center. They should be looking for a smaller semiconductor company who manufactures abilities fits the overall goal of DMC. The potential company should have a good foothold in the Asian market. Once acquired DMC can grow globally grow their brand, which will translate into a larger market share.
Analysis of Recommendation 1: Cohesive Business