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How Tech Data can become more
profitable.
Danielle Fiveland
 Ingram- $12.8 billion
-Mar 29th, 2014- Apr. 04th, 2015
-Gross profit- $617,461
 Arrow Electric- $11.14 billion
-Mar. 29th, 2014- Mar. 28th, 2015
-Gross Profit- $106,091
 Synnex- $4.1 billion
-Feb. 28th, 2014- Feb.28th, 2015
-Gross Profit- $288,218
 Ingram
-Up-to-date, modern, visually stimulating.
 Arrow Electric Co.
-Convenient access, Customer friendly.
 Synnex
-Lower costs, newer company.
 Tech Data is named “2014 Americas Distributor of the
Year” by Mitel
 Tech Data won the business of Barracuda over Ingram.
 Tech Data is ranked 107th on the Fortune 500.
 We provide thousands of job opportunities worldwide.
 Consistent business opportunities
 Business increased by 30%
• Despite loss of business in Chili, Uruguay and Peru in our last fiscal
year.
 Tech Data offers many products, services and deals from many different
vendors at lower costs.
 Our competitors have the same motives but not the same structure.
 Our quality is consistent and favorable.
 Tech Data’s teams always go the extra mile for their customers.
“Integrity & Respect, Teamwork, Partnership, Passion for Winning,
and ownership.”
 To increase revenue and margins.
 To keep our customers loyal and satisfied with
Tech Data.
 To drive more business with growing
companies around the world.
 In order to make our dream come true, we need to include the
following;
1: Sell more of what we don’t have.
2: Be more available. (Globally)
3: Modernize our business.
 Most importantly, we need to remember the Fundamental Equation:
Profit= Price-Cost
 The difference between price and cost:
 Price is the value of our product to a customer.
 Cost includes all of the resources that we use in our competition,
including capital.
1. Competition: Every competitor has the same motive but not
the same structure.
2. Structure: Our structure determines our profitability.
Industry structure is dynamic, not static.
3. Structural Change: Every company reaches a phase of
consistency, albeit products, revenue, etc. But the structure
can be inconsistent, which can potentially ruin a company.
4. Buyers: Also know as Customers are constantly demanding
more value in their products and are willing to pay more for
great quality.
5. Suppliers: Also known as our Vendors, will negotiate with
the distributors and buyers to increase their business’ as
well.
 These Five Forces are the key to monetizing and monopolizing the
industry.
 A business is driven by competition, relationships, supply and demand,
and structure.
 The Network Effect- Does the value to customers increase as more
customers use a company’s product?
-Stability, reputation and size of a company are all factors in a
successful business.
 Rivalry
-Price matching, losing profit. Potentially losing business when
competing with another company.
-Price competition is the most damaging form of rivalry.
 The Five Forces are universal and fundamental.
Complements- are products and services used together with an
industry’s products.
-For example; You can not use a printer without ink.
Complements can affect the demand for an industry’s product.
With growth, government and technology- they affect industry
profitability through their impact on the five forces.
“There are a limited number of structural forces at
work in every industry that systematically impact
profitability in a predictable direction. .”
~Joan Magretta
Danielles Powerpoint

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Danielles Powerpoint

  • 1. How Tech Data can become more profitable. Danielle Fiveland
  • 2.  Ingram- $12.8 billion -Mar 29th, 2014- Apr. 04th, 2015 -Gross profit- $617,461  Arrow Electric- $11.14 billion -Mar. 29th, 2014- Mar. 28th, 2015 -Gross Profit- $106,091  Synnex- $4.1 billion -Feb. 28th, 2014- Feb.28th, 2015 -Gross Profit- $288,218
  • 3.  Ingram -Up-to-date, modern, visually stimulating.  Arrow Electric Co. -Convenient access, Customer friendly.  Synnex -Lower costs, newer company.
  • 4.  Tech Data is named “2014 Americas Distributor of the Year” by Mitel  Tech Data won the business of Barracuda over Ingram.  Tech Data is ranked 107th on the Fortune 500.  We provide thousands of job opportunities worldwide.  Consistent business opportunities  Business increased by 30% • Despite loss of business in Chili, Uruguay and Peru in our last fiscal year.
  • 5.  Tech Data offers many products, services and deals from many different vendors at lower costs.  Our competitors have the same motives but not the same structure.  Our quality is consistent and favorable.  Tech Data’s teams always go the extra mile for their customers. “Integrity & Respect, Teamwork, Partnership, Passion for Winning, and ownership.”
  • 6.  To increase revenue and margins.  To keep our customers loyal and satisfied with Tech Data.  To drive more business with growing companies around the world.
  • 7.  In order to make our dream come true, we need to include the following; 1: Sell more of what we don’t have. 2: Be more available. (Globally) 3: Modernize our business.  Most importantly, we need to remember the Fundamental Equation: Profit= Price-Cost  The difference between price and cost:  Price is the value of our product to a customer.  Cost includes all of the resources that we use in our competition, including capital.
  • 8. 1. Competition: Every competitor has the same motive but not the same structure. 2. Structure: Our structure determines our profitability. Industry structure is dynamic, not static. 3. Structural Change: Every company reaches a phase of consistency, albeit products, revenue, etc. But the structure can be inconsistent, which can potentially ruin a company. 4. Buyers: Also know as Customers are constantly demanding more value in their products and are willing to pay more for great quality. 5. Suppliers: Also known as our Vendors, will negotiate with the distributors and buyers to increase their business’ as well.
  • 9.  These Five Forces are the key to monetizing and monopolizing the industry.  A business is driven by competition, relationships, supply and demand, and structure.  The Network Effect- Does the value to customers increase as more customers use a company’s product? -Stability, reputation and size of a company are all factors in a successful business.  Rivalry -Price matching, losing profit. Potentially losing business when competing with another company. -Price competition is the most damaging form of rivalry.  The Five Forces are universal and fundamental.
  • 10. Complements- are products and services used together with an industry’s products. -For example; You can not use a printer without ink. Complements can affect the demand for an industry’s product. With growth, government and technology- they affect industry profitability through their impact on the five forces.
  • 11. “There are a limited number of structural forces at work in every industry that systematically impact profitability in a predictable direction. .” ~Joan Magretta

Editor's Notes

  1. https://www.sec.gov/edgar/searchedgar/companysearch.html
  2. http://www.techdata.com/default.aspx http://synnex.com/ http://arrowelectric.com/ http://www.ingrammicro.com/