Strategy Consulting Of Tronica Electronics By My Assignment Help

By Author: Balvinder Singh
Total Articles: 55
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Tronica Electronics Pvt. Ltd. has faced a challenging business environment with little or no growth in the past three years. On the request of owners of Tronica Electronics, a team of strategic consultants of Tactica Consulting visited the Tronica plant for the first two weeks of August, 2010. This report is prepared by the team to highlight the current problems being faced by Tronica and contains recommendations for business improvement. It is based on the observations of the consulting team and discussions with the staff members. It was observed that the lack of leadership from CEO and absence of supplier arrangements is hurting the profitability and sustainability of Tronica Electronics. It is strongly recommended that the owners install a new management team and focus on long-term supplier arrangements with Asian manufacturers to improve the financial condition of the business.

SWOT Analysis

A SWOT Analysis will throw a light on the internal and external environment in which the company operates

Strengths

1. Strong brand equity: The Company has been in the marketplace for over ...
... 80 years now. Due to its reputation for quality products at affordable prices, it has strong brand equity and a loyal customer base which is keeping the company afloat.

2. Established distribution channels: The Company has well established distribution channels for its products which include supermarket chains like Target and K-Mart and small independent stores. This means that the company has access to a wide target market.

3. Experienced staff members: The Company has very experienced and supportive staff especially in assembly line. Many of them have previously worked in industry giants such as Microsoft and Sony. This means that the Company has developed core competency in the mid-range electronics products.

Weaknesses

1. Lack of differentiation strategy: The Company has witnessed a shift from being a leading innovator in the 1980s to cheap imitator of products now. This means that there is no factor which differentiates it from its competitors.

2. Absence of supplier arrangements: For a company its size, it is surprising that Tronica relies on ad-hoc arrangements for its components. This results in higher component price which hurts the margins of the company in this low margin business. Moreover, there are occasional stock outs of component parts which results in delay in supplying to the customers which hurts the reputation of the company.

3. Experience staff nearing retirement: The experienced staff especially in the assembly line is nearing the retirement age. This will create a vacuum in the company as the company will find it difficult to train its new recruits.

4. Lack of vision: All the weaknesses can be attributed to the lack of vision the company is facing. The shift in strategy (to cheap imitators) happened in current CEO’s reign. It was observed that the CEO is already contemplating retirement plans and is not focussed on the job ahead. There were suggestions of nepotism from the staff members as the CEO has given his two sons prime responsibilities in the company with a view of keeping a hold on the company after his retirement.

Opportunities

1. End of CEO’s term: The current CEO has been in charge for over 30 years now and it will be difficult to replace him just before retirement. However, the end of CEO’s term presents an opportunity to the company to install a new management team with new vision.

Threats

1. Threat of distributors: The distributors may threaten to stop selling the products of Tronica if the sales do not improve in near future.

2. Reduced life cycle of products: In this age, the life cycle of products is reducing. The company needs to keep track of the changes in the marketplace at all times to model or they will lose out to the competition

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