Arrow Electronics Inc. Case Essays

1568 Words 7 Pages
Arrow Electronics Inc. Case

Arrow Electronics is a distributor of electronic parts, including semiconductors and passive components. It was founded in 1935 and has reached number one position among electronics distributors by 1992. Arrow’s North American operations were headquartered in Melville, N.Y. Sales and marketing functions were divided among five operating groups. This case study focuses on the largest of Arrow’s groups, Arrow/Schweber (A/S).

Express Parts, Inc. made a proposal about an internet-based trading system which would enable distributors to post inventories and prices to an internet platform and thus give customers the opportunity to shop for prices.

The question is if Arrow/Schweber should accept the offer of
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Also FSRs establish relationships with customers. That contradicts with the BAS system, where sales and marketing representatives (SMR) act passively by handling daily phone calls from customers checking delivery, availability, and price levels. The values provided for the relationship customers are the provision of credit and short delivery lead times, the price performance ratio, and the best-in-class support. Furthermore, A/S offers to be a steady partner, that means the continuous availability of products is ensured and customers can keep their primary distributor in check. Another two values are the chance to interact and to see the true benefit. In 1977 about 2% of A/S’s sales had a value added component. This number is expected to reach 80% by 2000.

Relationship Suppliers
As mentioned before, A/S has four main suppliers (Altera, Texas, Intel, and Motorola).
The suppliers expect A/S to fulfil the following tasks: o help the suppliers growing and gaining market share and profit in their standardized product segment by generating demand o introduce the suppliers new technologies to the potential customers o provide value-added services o provide the suppliers products to smaller customers who are not served directly by the supplier

It is important for A/S to network with its suppliers, because
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