Computron Inc
REPORT ON
THE GROWTH AND EXPANSION POLICY IN
THE EUROPEAN DOMAIN
OF
COMPUTRON INC.
INSTITUTE OF PETROLEUM MANAGEMENT, GANDHINAGAR
Submitted to: Prof Sanjay Gupta
Date of Submission: 15.09.2008
Submitted by: Joydeep Mukherjee
Roll No: 20081020
To: Mr Thomas Zimmerman (Manager, European Sales Division, Computron Inc.)
From: Joydeep Mukherjee
Date: 15 September, 2008.
Subject: Evaluation of the Opportunities and Challenges faced by the company
The report presents an outlook of the action plan for future growth of Computron Inc in Europe. The analysis has been done keeping in mind the opportunities in the present context, especially the deal with Konie & Cie., AG. Regarding challenges, the feasibility of the new plant in Frankfurt, Germany and the competition faced by upcoming rivals have been duly considered.
Executive Summary:
The mode of expansion of the company in the European market is the crux of the issue. The company has started its manufacturing in Germany which has reduced the product’s price but further reduction can be done in basis of R&D cost and transportation cost. Factors like compromise on quality of the product, break even analysis pertaining to the investment made, effect of price reduction on brand image and increment in market share both in the German as well as European market has been considered. The effective policy would be to only manufacture cost effective products in the German manufacturing unit with a different brand name.
(Word Count: 106)
Situation Analysis:
European market of the digital process control computers contributed 11% of sales of the company in this fiscal year and in upcoming years a significant growth is expected. The Germany market itself is poised to increase at a rate of 25%/year....
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