COMPSIS AT A CROSSROADS- Case Analysis Presenation Part 4

Slide 20:

Backward integration

¡  Enter new industries that add value to its core products

¡  Currently last stage in value added chain

¡  Currently contracts out hardware

¡  By manufacturing, attempt to minimize overall costs, and ultimately increase profitability

Slide 21:

Backward Integrations:

¡  Pros

¡  Overall minimization of costs that can be realized, resulting in profitability to the downstream industry

¡  Can achieve a competitive advantage

¡  Cons

¡  Entering industries with no experience

¡  Increasing cost structure

¡  Changes in technology

¡  Unknown demand (still does not remove dependence on Brazil)

Slide 22:

¡  ABC Expansion

¡  Argentina , Bolivia and Chile, the top 3 Latin American countries for expansion

¡  Market development strategy using SICAT

Slide 23:

ABC Expansion

¡  Pros

¡  Road congestion

¡  Few competitors

¡  Similar economy

¡  Rapid growth

¡  Cons

¡  High priced system

¡  Previously unable to win projects outside Brazil

¡  Large companies may also see potential

¡  Unstable economies

Slide 24:

Recommendation

¡  Expand to Latin American countries

¡  Most importantly relieves the dependence that Compsis has placed on Brazilian market

¡  Allows operations within the same industries they excel in

¡  Transfer core products to new markets in countries similar to what the know

¡  Market development

¡  Push marketing strategy

Slide 25:

Implementation

¡  Open sales office in Argentina and Chilie

¡  Build relationship

¡  Introduce additional products

Slide 26:

Conclusion

¡  Based on the situation, company is in cash strapped.

¡  Best way is to expansion in Argentina, Bolivia and Chile

¡  In ABC, competition is less intense.

¡  Open offices there by fostering relationship with these countries

COMPSIS AT A CROSSROADS- Case Analysis Presenation Part 3

Slide 10:

Approach to win market(Loyalty of the costumers)

¡  To install a Sales Office

¡  Preferred Vendor for a Construction Firm

¡  VAR (Value-added Reseller). 

Slide 11:

Strengths

¡  SICAT & Updates and Maintenance

¡  Market Leader

¡  Develop SICAT in house

Slide12:

Weakness

¡  Small Sales Team

¡  Depend on single product SICAT

Slide 13:

¡  Opportunities
Expand into larger markets

¡  Latin America

¡  Brazil is expecting more concessions

Slide 14:

¡  Threats
Entering into matured industries

¡  Unstable market of Brazil

¡  Lack of contracts in Brazil

¡  Technological changes

Slide 15:

Alternative Analysis (PEST)

¡  POLITICAL

¡  Delay awarding projects at Brazil

¡  Getting assistance from government

¡  Aimed at gaining integrated, phased and self-sustained growth of the company to flourish outside Brazil

¡  ECONOMIC

¡  Inflation, recession and currency

¡  Economy of the company felled down tremendously in 2004

¡  Collaboration for Integration of hardware with local companies making cost effective of operation

Slide 16:

¡  SOCIAL

¡  Dependent on the purchasing power of the customers.

¡  Purchasing of the products will be fruitful to the governments and the companies as it gives overall revenue model from different toll at different plazas.

¡  TECHNOLOGICAL

¡  Investing in making its products more usable and more functional

¡  Taking SICAT upto level 4 for overall Financial Function

¡  Aiming to make its products advantageous over Foreign Competitors

Slide 17:

Alternative options/recommendations

¡  Expanding into US

¡  Backward Integration

¡  ABC Expansion

Slide 18:

Expanding to US

¡  Short Run Strategy

¡  Use SICAT – first approach with a partnership into Florida and Texas

¡  Long Run Strategy

¡  Expand Products offering and expand markets within the US

¡  Look for joint ventures

Slide 19:

Expanding to US

¡  Pros

¡  Market is large, stable and growing

¡  Demand quality products

¡  Increase operation cash in short run

¡  Increase profit margin

¡  Cons

¡  Mature Market

¡  Risk of sales force unable to win any contracts

¡  Little experience with partnerships

¡  Missed Opportunities

COMPSIS AT A CROSSROADS- Case Analysis Presenation Part 2

Slide 5:
Three Generic Strategy

¡  Overall cost leadership

¡  Differentiation

¡  Focus

COMPSIS AT A CROSSROADS- Case Analysis Presenation Part 1

Slide 1

¡  Computadores e Sistemas Ind. e Com. LTDA.

¡  Founded in 1989 by engineers from the Brazilian aircraft firm Embraer

¡  Based on San Jose dos Campos

¡  Started as aircraft embedded system for Brazilian Airforce, with failure switched to automotive Electronic Toll Collector (ETC)

¡  Core value of the company is to developing more diverse customized products and services which creates a value for its customers.

¡  improvement in the operational activities with improved functions such as developing new software company attain a huge market share in Brazilian market.

¡  Operated in India & Australia.

¡  Looking for Global Entrepreneurship.