COMTEC CORPORATION

Robineau Clément

Raffestin Thomas

Case Study

OVERVIEW

Comtec Corporation in January 1984 Microcomputers and specific software A lack of competitiveness

OVERVIEW

President:Dr. Daniel NEEDHAM

Sales Manager in Amsterdam

Mr Max MENDEL

Vice President:

Mr. Harry OTTO

Computer Consultant

Ms Roberta MALCOLM

OVERVIEW

Dialogue:

Between the President, the Vice-P and the Consultant

They discuss the recommendations of the consulstant

Mr Otto tryes to not follow At the end Ms Malcolm explains her

recommendations with facts

OVERVIEW

Exhibit 1

OVERVIEW

Exhibit 2

OVERVIEW

Exhibit 3

OVERVIEW

Exhibit 4:

OVERVIEW

Exhibit 5:

Existing Situation

Strength

Powerful, ultra-high speed

Products

Weakness

Expensive

Said The consultant Ms Malcolm

Existing Situation

Strength

Highlight the qualities of the

product.

Communication

Weakness

Not enough ad, trade shows,

press releases

Existing Situation

Communication

Weakness

Not enough ad, trade shows,

press releases

Existing Situation

Strengh

Specific Market

Management Weakness

Not adapted for all the sectors

Existing Situation

Strengh

Present in Europe

Intercultural

Weakness

Not enough turnover

Existing Situation

Strengh

Strong market in US

Economic

Weakness

Losses abroad

Statement Of Problem

How to avoid the lack of competitiveness and the

crisis while increasing sales?

Option 1: Status quo:

Pros: Preserve the image of

the company in Europe.

Still in a strong position in the European market

No problems with dismissal concerning the European workers

Cons: Loss of money( sales

decreasing) Bad for long term

strategy decisions Still bad

communication concerning the product.

Status quo in this situation means the company keeps selling in Europe and doesn't follow Mrs Malcolm recommendations.

Option 2: Closing down the European office in Amsterdam

Pros: Keep the focus on

US market Avoid losses Reduce the costs of

the company( with no export charges)

Following Mrs Malcom expert advice.

Cons: Loose the Dutch

market Bad image in Europe Dismiss all our

employees in Europe.

Option3 : Switch hardware to software emphasis

Pros: Possibilities of

Partnership with IBM compatible software

Entry to a new market

Reduce the costs and avoid losses of money

Cons: Expensive

investment require lot of financial resources

Risky with no guarantees on return on investment

Lost of the hardware market.

Option 4: Change the communication

Pros: Customer base

more informed increase of sales

Increase Comtec corporation’s image in existing markets

Follow Mrs. Malcom expert advice.

Cons: Huge expense Risky choice ( the

customers might not like the new ads)

Possibility of sales decreasing even harder.

Option 5: Following all Mrs. Malcolm recommendations:

Pros: Long term strategic

plan Important income

from return on investment.

Entry to new markets New products

available for new type of customers.

Cons: Brand image Really big investment Risky option Close existing

markets.

DISCUSSION