Strategy of HardCo Computers - Essay Example

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. Being a medium sized firm, there is a huge prospect to expand the business by adopting and implementing a number of business strategies that will eliminate inherent bottlenecks that could otherwise constrain the company from achieving an upward growth curve. 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. Secondly, the company can invest heavily in creating and improving its brand. This enables the business to protect against existing competition by penetrating into the market and even eating into established business’s market shares. This is known as branding or product positioning where the company builds a consumer base in the market (Aekar 1996). The company must invest heavily in popularizing its products and make them visible, recognizable, trustworthy, appealing, and desirable. Unmistakably, the marketing strategy utilized by the company is not efficient enough to create an appeal around the kind of products that the company produces. There should be extensive use of online marketing since the approach generates substantial results in growing the sales of the company even surpassing the sales in network stores. The company’s main clients are businesses rather than individual clients who repeat purchases after a period of eighteen months to three years. For this reason, the company must invest greatly in a more efficient sales workforce that will drive big orders for the company’s products. As it stands, the current sales team comprises only 10% of the work force. The ten percent has contributed significantly in driving up the profits. A much robust team of experienced sales persons shall be an investment worth every penny. The fact that the company is locally owned it could gain easy rapport with clients by offering the best quality products with free after sale service. This will build the reputation of the company even further. By investing heavily in the online business, the company will be able to avail the company’s products closer to potential client by making it more visible enabling the targeted market to easily identify the products and even make purchases and order online. This method would help in cutting back on the expenses of having to invest in physical space and break down the physical immobility of sales because the product is available to a much bigger market (Aekar 1996). HardCo computers have a poor distribution of employees, for instance, it has too much concentration of staff in the stores who are less productive than the staff driving the online sales. Typically, the business needs to change or cut down on the shop staff in favor of the online marketing staff. In addition, a large presence of managerial staff is too much for such an organization of such size. There is also reported dissatisfaction by staff, which influences negatively on the business outcomes. Various approaches to cheer up the employees drive must be implemented to create harmony in the company. This shall allow the organization to maintain the talented and skilled staff it needs to grow the business. This is especially true for those working in the factory and in the sales section. Clients return the company’s products due to the poor assembling procedure, because of lack of motivation. This issue should be dealt with immediately to avoid bad publicity about the company (Aekar 1996). The Coffee Shop Business in the U.K The U.K coffee shop industry already has over 15,000 outlets and the preference for coffee in the market is increasing and larger with more specific and expensive tastes in the market. According to the experts, the number of outlets will increase by additional 2,000 in the next two years. The complexity of tastes has become classless such that coffee drinking culture in the market has transcended both economic and social classes. From high streets to the business districts, coffee recognized chains have penetrated into counties and boroughs. They have positioned themselves in town centers, parks, railway stations, and airports. In 2012 the coffee business generated over 2 billion pounds which is already double that in 2005. Experts also contend that the boom is far from over and thus; there is still opportunity for players in the market in spite of the economic depression. The regular consumer in the market is ready to use 2.5 pounds for a cup of coffee (Stevenson 2012). The environment is thought to be competitive but the industry is growing. To enter the market the company should target untapped frontiers in the market like outlets and transport terminals. Invest greatly in coffee blends and investigate the next generation of blends that will excite the market. Start small and grow the brand through brand marketing. References Aekar, D. (1996). Building Strong Brands.s New York: Free Press. Stevenson, W. (2012). Food and Drink Industry. Retrieved November Tuesday, 2013, from A guardian website: www.The guardian.com . Read More