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Desko case analysis Essay examples

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University Of New Brunswick Information Technology & E-Business MBA 6106 Case Study report On Value Chain and IT Transformation at Desko Submitted By Sharath Chandra Maddur Instructor Dr. Rebecca Angeles Winter 2013 April 18, 2013 1 a) Business Strategy and IT Strategy: Recommend an improved or new business strategy and its supporting IT strategy to Desko Business Strategy: A Business strategy is a plan articulating where a business seeks to go and how it expects to get there. It is the means by which the business communicates its goals [1]. Desko’s business strategy, at the moment, seems to be impaired by a lack of proper understanding of current market scenario and an unpreparedness of the firm in dealing …show more content…

Differentiation, in which the firm tries to make a unique product and gain an advantage. Recommended Business Strategy: We recommend Cost Leadership strategy for major portion of the business units in Desko. However, we also recommend that a Differentiation Focus strategy be applied to the business unit that deals with the customer segment which involves large enterprises and institutions. The cost leadership strategy would address the key issues mentioned in Five Forces Model in the following ways:  The cost leadership strategy gives Desko an ability to offer the products at low prices to the buyers. Since the buyers are powerful, it is in best interest of Desko to comply with buyers’ requests.  This strategy gives a competitive advantage over Desko’s rivals in the industry. One of the reasons of Desko’s loss is due to the advent of Asian products in Canadian market at cheaper prices. Sensible thing for the firm to overcome this problem is to compete with its rivals on lower prices.  Desko can use the lower prices to defend itself against the threats of the substitutes. Lower prices would keep the threat of substitution low.  Being the cost leader in the industry, Desko can gain customer loyalty to its products. This will act as an entry barrier for the new entrants. In addition, we recommend that Desko treat the business segment that deals with serving large enterprises with customized

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