CASE STUDY ANALYSIS

GROUP 7

FARM ELECTRONICS
Introduction
This company first identified farmers as the target customers for this kind of
equipment. It was the right kind of ecosystem for business, with all
infrastructural requirements for electrical and electronic manufacturing being
accessible. Dinesh, the owner positioned the company as a sub-vendor within
the Isolation transformer market where they manufactured big and small
products. The premise of their sustainable business model is a few established
relationships with customer organizations would ensure repeat business and
regular returns.

Problem identification
The company wants to increase its customer base but is not sure about which
type of customers should it choose for expanding its new customers. Type A
customers are multinational companies that already established a regular
business link so the process is familiar. Type B customers are local
manufacturing industries that are catering to big players. Type C is similar, but
the difference is they are small-scale industries so their needs and wants will
be slightly different than Type B. Type D customers are small vendors and
service centers that are a bit unorganized. The owner will contact multiple
vendors and select the one offering the product at the lowest price. This helps
Farm Electronics distinguish that they generally require generic products and
are not very stringent in terms of specifications. The last classification of
customer is a public sector unit (PSU). These are government-stake and large
firms in various industries.

SWOT
Strengths
-quality, timely delivery, and after-sales service,
-They are also very focused on being accommodating towards customer needs.
- Firms would contact them specifically for the design and delivery of precise
requirements.
Weaknesses
-salesforce, marketing strength, and investment constraints.
-They made attempts with cold calling/ emails, attending trade fairs, using
personal contacts within the industry.
Opportunities
-targeting many different global segments like the overseas market in Africa.
-The globalization of their production will continue the expansion of the
company.
Threats
-Potential threats to this company are possible product damage and safety
measures.

Analysis
Based on the case factors, Farm Electronics can target many different global
segments like the overseas market in Africa. This expansion option would take
advantage of the fact that these countries have very few suppliers of this kind
of equipment besides Chinese manufacturers. Farm Electronics could
effectively compete against these Chinese manufacturers with better pricing
and quality after-sales service. The only difficult characteristic of this segment
is that entry would require a substantial initial investment in infrastructure and
these kinds of buyers were demanding an extended credit period. Therefore,
targeting these kinds of small businesses could also result in problems
associated with credit.