CASE ANALYSIS: COMPUTRON INC.
Group members:
Andrea Vallabh
Ksenia Ferapontova
Heinrich Von Keler
Ngo Pham Thuc Uyen (Lisa)
Instructor: Mr. Johnson
BSL ? Business School Lausanne
Industrial Marketing
July 18th, 2007
SWOT analysis
STRENGTHS WEAKENESSES
Special techniques on how to produce specialized computers. Manufactured in US, have to pay import tax => prices increase
Largest market share in Germany (30%) High markup on cost => higher prices than competitors
Good relationship with Konig, customer loyalty
Good reputation for flexible, accurate and high quality computers
OPPORTUNITIES THREATS
Constructing a plant in Frankfurt to serve the whole Europe and to avoid the import tax. Competitors are competing on both techniques and prices.
German market to increase 25% for the next several years
$1,300,000 worth of new business in the future.
Case summary
Computron is an American firm that had an European sales office in Paris with Thomas Zimmermann as its manager. The main product is 1000X computer which is famous for its precision, dependability, flexibility and ease of operation. Comparing to other medium sized, Computron has its price higher than the competitors.
The main market of Computron in Europe is Germany; therefore, it is planning to build a manufacturing plant in Frankurt to be entirely free from import tax. However, this new plant might have to sit idle for a couple of moths if Computron couldn't win the bid to sell its computers to Konig, the biggest customer in Europe. From a reliable source, Zimmermann knows that if the bid of Computron is not higher than 20% of its competitors, it would stand a chance to get the contract. Nevertheless ...