MM IT SOLUTIONS LTD

MM IT solutions Ltd

MM IT solutions Ltd

1. Using the case study perform a SWOT analysis on MM IT solutions. From your SWOT analysis identify five areas of major concern and explain concisely how they could be improved.

Industry Conditions

I think now about personal computer market is shirking period since recession economic and maturity of the product so that MM IT Solutions must found highly competitive including price, promotion etc. Furthermore, company has to get new treat from merging between HP and Compaq which make HP to be No 1 in pc market and reduce cost since they can reduce cost by cutting duplicating cost. (McDonald 2004:35-57)

Corporate Capability (SWOT analysis)

Strength

Selling directly to consumers and keeping its costs lower than those of other hardware vendors.

Lowest inventory in PC industry since using Build to order and Just in time inventory

Virtual integration

No distributor which make MM IT Solutions can significantly reduce cost compared competitor

The fastest in launch new product because MM IT Solutions has low inventory level that make company can change product so fast since.

Weakness

Low market share in high-end computer such as server which is high profit product

The direct sales approach is not compatible with inefficient transportation system country such as China, Thai etc.

Lack of Finance personal

Limited marketing approaches to capture the market.

Dell does not have a strong relationship with dealer due to their direct model, which sells directly to their customer. This has a big impact their brand name because it has resulted in lack of support from dealers to help promote their brand to consumers.

Dell's dependency on component supplier such as Microsoft and Intel due to majority of PCs' platform is based on MS Windows and Intel's processors.

Dell does not invest much in research and development as they provide a standard-based technology through its direct business model. Therefore, Dell's business strategy does not encourage them to invest significantly in producing any new technology.

Opportunity

MM IT Solutions looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase.

MM IT Solutions saw the Internet as a powerful marketing tool.

Expand market outside US.

Internet users continuously increasing so that make e-store of MM IT Solutions sustain growth

Threats

MM IT Solutions realized that competitors like IBM and Compaq Computer Corp. had stronger brand names, which put MM IT Solutions in a weaker position with dealers

Economic recession which make demand of PC radically decreasing

Merger between HP and Compaq

Strategy

Build to order of customer that make MM IT Solutions has much lower than competitive

Strong partnership with suppliers that make MM IT Solutions can get supply product, which MM IT Solutions really want

Direct from MM IT Solutions only which this strategy MM IT Solutions will hasn’t distributor dealer so that MM IT Solutions can reduce cost since distribution channel is so highly cost.

Use of Internet and e-commerce that is major channel in marketing for MM IT Solutions and major channel in sale also.

MM IT Solution's strategy is to acquire customers from its chosen target segments by using ...