Comtec Corporatio

n

Case Presentation

Microcomputers and specific software

January 1984

Difficult time in domestic and international market

Localisation

Names and Positions

Dr Daniel NeedhamPresident

Mr Harry OttoVice-President

Ms Roberta MalcolmOutside Computer

Consultant 

Mr Max MendelSales Manager in

Amsterdam

Synopsis of exhibits

July August September October November December0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

DomesticInternational

Net Operating Working Capital = (Cash + Accounts Receivable + Inventories) - ( Accounts Payable + Accrued Expenses) = (44 190 + 251 340 + 233 244) – (473 518) = 55 256

Working capital = Current assets – Current liabilities = 539 530 – 527 700 = 11 830

o Net cash = Net Operating Working Capital – Working Capital

= 55 256 - 11 830 = 43 426

Advertising• Heavy reliance on

jounal advertising and press releasesStrengths

• Wrong target• No trade show• No direct mail

Weaknesses

International• Presence both in

Europe and US Strengths

• Low turnover• Costing > producing

Weaknesses

Product• Ultra high-speed and

multitasking microcomputers Strengths

• Expensive

Weaknesses

Management• Hire an outside

experienced consultantStrengths

• The president doesn’t take decisions

Weaknesses

Malcolm’s point of viewClose down the European office and

concentrate on the US market

Shift from Hardware to Software and produce IBM compatible software

Shift from heavy reliance on journal advertising and press releases to direct mail advertising and trade show exhibits

Otto’s point of view

Marketing not agressive enough

Orders are coming

New targeted fields are not quick sells

#1: Status quo

- Give the chance to the order for 10 Comtecs plus software to success- Let the inquiries turn into orders- Not taking risk with prematures and bold decisions

+- Loss of money- « Long-term waiting game »- Orders may not be realized

-

#2: Closing down the European office in Amsterdam

- Concentrating only on the US market- Reduce losse

+ - European orders will not be satisfied - Less consumers- Bad reputation

-

#3: Shift from hardware to a software emphasis

- A new market- Producing software for a well-known company

+ - Loss of the hardware market- Change costs money- Big risk

-

#4: Shift from heavy reliance on journal advertising and press releases to direct mail advertising and trade show exhibits

- Target audience more informed- Turnover increasing

+ - Costs money- Shock regular consumer - Intrusive approch

-

#5: Merge with another company

- A new market with many clients- More ressources

+- Loss of freedom and independance

-