DMC Review Papers

1731 WordsMay 5, 20147 Pages
DIGIMAXCON CASE As Mr. Grant, CEO of DMC has realized, the current growth strategy of the company is insufficient. DMC needs to identify their primary business problems and prepare a new or revised strategy with alternative tactics to address it. Even though DMC had grown to become a multi-billion dollar company and consistently ranked in the top five in their industry, DMC’s returns between 2008 and 2012 showed great profits and loss swings unpredictably. These ranged from a net income loss of $1.5 billion in 2008, $1.9 billion in 2009, to a profit of $1.9 billion in 2010, $1.7 billion in 2011 then a loss of 1 billion in net income in 2012, the most recent year. (Table 1) Despite of the up-side-down net income and over $3 billion…show more content…
With that in mind, DMC tries to create the own personal computer and touch screen products. It might fail most of the time but it only needs one success to build up the brand and the future direction of the company. DMC really needs to take direct sales to the end user customer into consideration. Even though the Business-to-consumer (B2C) is not common in the electronic components industry, it is well worth the try. After an informal meeting with VP of IT, CEO Grant understands the possibility of moving into B2C without a large capital outlay if they could allocate some dedicated programming time to the project. There are still some concerns over the fact that the sales team would have to be heavily involved in any project like this and smaller orders would not be cost effective and would require too much support for product selection. However, the IT team’s view of sales on the web was that it could a relatively automated process, with a built-in digital configurator tool to help customers choose the right parts with minimal human intervention overall. With the B2C on the line, DMC can seriously consider cutting wholesale distributor like VAR. They not only can save the dollars-turn in every product but also avoid the irregular
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