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TEAM 01 - 1000 - SPRING 2016 - PRESENTATION (5)
- 1. M3 Distribution Representative: JenniferEchols • Product: Electronic components/Assembly/ Fabrication. • Target: Oil Gas/ Medical/ HVAC • Team 01TTH10:00 – Joaquin Dela Cruz, Carlos Hernandez, Luis Villalpanda, HugoVillegas 2004 2006 2008 2010 2012 - Opened as regional distributor of interconnect& passive - M3distribution M3 Distribution- Cable assembly division Sheet metal fabrication division Opened a new facility Became an ISO 9001 Certified Company
- 2. HighCustomerService–High Quality Western Region ME AE TS TTI Strategic GroupMap ME – Mouser Electronics TTI –TTI, Inc. Americas TS –Trend Setter M3 – M3 Distribution AE- Allied Electronics West South Central Region North East Region M3 H L M
- 3. Industry Dominant Economic Characteristics •High # rivals • High entry barriers • Low growth rate(-) • Technological change (+) • Geographical concentration density(+)
- 4. Driving Forces ofChange • (+) ISO9001 requirements-steady rate I: Risk/Lose Suppliers R: Proactive – Keep certification updated • (+) uncertainty (Suppliers)- steady rate I: Retaining Contract R: Acquisitions of new suppliers • (+) technological change-steady rate I: Update /improve R: Bulk purchasing I = Impact R = Recommendations
- 5. Five Competitive Forces •(5) Rivals - Strong pressure I: Lose contracts-Large Distributor R:Acquire new suppliers • (2) Entry - Weak pressure I: Low priority R: Focus on customers-attract competitors customers • (3) Suppliers – Moderate pressure I: No bargaining power R: Strategic partnership with suppliers • (2) Buyers - Weak pressure I: Customers (buyers) - no bargaining leverage R: Affordable products. • (2) Substitutes – Weak pressure I: Losing market share (low risk) R: differentiate products Overall Competitive Pressure: 2.8 – Moderate
- 6. Key Success Factors •Accessibility • Customer service(*) • Quality products • Goodwill • Open communication (*) • Connection to employers(*) • Technology requirements * Currently integrated into company strategy
- 7. Industry AttractivenessAnalysis Criterion WR WR D Customer Service .35 7 2.45 1.053 Expertise requirements .25 5 1.25 1.252 Technology Requirements .20 1 .20 1.81 Seasonality issues .05 8 .40 .10 Competitive Forces .05 3 .15 .35 Growth .05 2 .10 .40 Profitability .05 2 .10 .40 1.0 4.65 5.35 Customer Service I: Customer retention (+) R: Proactive feedback Seasonality Issues I: steady customer flow R: incentives to attract customers Expertise: I: ISO9001 requirement (+ training cost) R: Leverage certifications in contracts Technology requirements: I: Machinery/software update (high cost) R: bulk-discounted items Competitive Forces I: Encourages innovation R: Add more suppliers Growth: I: less resources on rivals R: Focus on expanding suppliers Profitability I: Restricts entry R: Focus on MIS for budgeting W = weight R = Rating WR = weighted rating D = delta 1, 2, 3 Reflects MIS Resource Allocation Priority
- 8. Company Strategy Analysis LowCost Leadership Strategy • Obtainable price • Goodwill recognition • Attracts diverse customers • Manage costs effectively
- 9. SWOT Analysis Strengths • Connectionto employers(*) • Customer support(*) • Open communication (*) • Goodwill Weaknesses • Identity(-) • Limited Brand • Staff support • Mobility & Location • Accessibility Opportunities • Location – Regional expansion • Regional economy • Regional population Threats • Financial funds • Competitor expansion • Supplier contracts + integrated into current strategy
- 10. CSAM Analysis M3 DistributionMouser Electronics Trend Setter Allied Electronics TTI, Inc.Americas Criterion WT Ratin g WTD Rating Delta Rating WTD Rating Delta Rating WTD Rating Delta Rating WTD Rating Delta Rating WTD Rating Delta Accessibility .15 4 .6 .9 6 .9 .6 2 .3 1.2 5 .75 .75 1 .15 1.35 Customer Service .15 7 1.05 .45 4 .6 .9 5 .75 .75 6 .9 .6 3 .45 1.05 Quality Products .15 5 .75 .75 7 1.05 .45 6 .9 .6 8 1.2 .3 6 .9 .6 Goodwill .10 8 .8 .2 3 .3 .7 5 .5 .5 4 .4 .6 6 .6 .4 Open Communication .15 6 .9 .6 4 .6 .9 1 .15 1.35 3 .45 1.05 5 .75 .75 Connection to Employees .2 6 1.2 .8 3 .6 1.4 4 .8 1.2 4 .8 1.2 5 1 1 Technology requirements .1 4 .4 .6 8 .8 .2 5 .5 .5 5 .5 .5 4 .4 .6 1.0 5.7 4.3 4.85 5.15 3.9 6.1 5 5 4.25 5.75 Offensive Strategy Mouser Electronics– 3.5:1 Head-on Assault– Promote company values towards public Defensive Strategy Mouser Electronics– 1:1.5 Blocking Strategy – Availability promise
- 11. Culture - Strategy- Structure • Confidence in Strategy • Retain Key Employees • Incentive pay/Rewards • Interpersonal Relationships • Low Cost/Differentiation Strategy • Training Programs • Adaptable Culture
- 12. Corporate Strategy • RelatedDiversification Strategy • Maximizing strategic fit – use all capital & available resources • Create synergy – High Goodwill
- 13. Combined Matrix Analysis RelativeMarket Share High Low IndustryGrowthRate Low High LowHigh Medium High Low IndustryAttractiveness ~~ CSAM & CPAM SP P S M3 Plus DistributionM3 Distribution
- 14. Strategic Issues • ShortTerm 1.How do we gain more customers? 2. How do we keep supplier contracts? 3. How do we raise capital? • LongTerm 1. How do we improve customer satisfaction? 2. How do we gain more market share? 3. How do we increase our competitive advantage?
- 15. Action Steps • ShortTerm 1.Implement a better marketing strategy 2. Meet supplier sales quota 3. Short term investments • LongTerm 1. Rewards program 2. Acquire other entities 3. Specialization